Selling your home is a major undertaking and there are many factors to consider when pricing it. With price sensitivity increasingly evident in the property market, understanding local market conditions and pricing realistically are essential if you want to achieve a sale. Zoopla reports indicate that while 59% of listings had no price reduction in February, four in ten did have reductions. Let’s take a closer look at what this means for you as a homeowner.
HomeOwners Alliance research of over 6,500 agents indicates that 8-14 days is the optimum listing duration for agents to achieve the best possible price for your home. This gives enough time for potential buyers to discover your property and make an offer without feeling like it’s been on the market too long. If your listing is too short, buyers may feel like they don’t have enough time to make an informed decision; if it lingers on the market, buyers may start to wonder if it’s been overpriced.
What Should You Expect From Buyers? The latest survey by RICS suggests that the average sale is currently being agreed within a 5% margin of asking price, so it’s important to be realistic when pricing your home. Buyers understand that they need to offer a fair price and will expect you, as the seller, to do the same! Make sure you are up-to-date with market prices and trends before deciding how much you should list your home for. Doing this can help ensure you get the most out of selling your home without leaving money on the table or scaring away potential buyers with an unrealistic list price.
Source: Dataloft, Zoopla, HomeOwners Alliance
For those sellers who have their homes priced correctly, this is great news! Their efforts will be rewarded as buyers are drawn in by competitive prices. But for others whose agents may have encouraged them to ask too high of a price—beware: An influx of new stock means there’ll be plenty more competition from better-priced properties nearby. Note that reducing your asking price doesn’t necessarily mean taking a loss; it’s simply adjusting expectations about where the property market is today. If you’re a home mover, your next property will also be valued according to current price sensitive conditions.
Leigh Thomas – Truuli Property Expert
