Getting the best price for your property can mean the difference between making a profit and making a loss. Getting the best price for a sale or rental is a straightforward but often overlooked process. These simple steps are a must for any quality seller.
Most people believe that only an Estate or Letting agent can determine how much your house is worth. Whilst it is wise to take advice from a professional, the asking price is ultimately down to the seller, here's how you can make sure you get the right price
Firstly lets look at how a house is actually valued.
Any quality Estate or Letting agent will give you a comparable report for your property when they conduct a valuation, this is a list of comparable properties usually withing 1/4 mile radius of your home that has sold in the last 12 months, they may also show you a similar list of properties that are currently on the market. This is a good starting point on any valuation as it gives the agent an approximate price to look at. The property should have been sourced from a few locations such as:
Make sure that you check out these properties yourself if you want to gain an idea on how much your house is worth before calling an Estate agent.
There is no point in comparing your property to another if the condition is completely different. The condition of a property obviously makes a huge difference to how much it may be worth. Small cosmetic defects won't drastically change your asking price but a 15 year old bathroom/kitchen in comparison to a modern one will do so substantially.
Check all of your rooms for signs of damp, If you find small specs of black mold appearing then you may require a damp proof course
Check your windows for failed double glazing. Older double glazing can become foggy, you could consider replacing it, or pre-emptively reduce your asking price as this will be picked up on the survey and could put buyers off.
Replace any cracked or broken tiles in the bathroom or kitchen.
If you have any cracks in your plaster make sure to get it checked, even minor subsidence will halt a sale instantly.
Make sure you don't have missing roof tiles or blocked guttering
Don't underestimate how minor defects can affect your valuation!
The property market is more like the stock exchange than an actual set of prices. Demand for property goes up and down depending on hundreds of factors, such as local issues, national interest rates, changes in law, or economic fluctuations. This will all play a part in how much your house is valued at and its' realistic potential to sell for. Your Estate Agent should be fully up to date with any local issues and how the market is doing at the moment. Make sure to ask your agent to tell you the current state of affairs, if they cant tell you then they are probably not the best choice to sell your property.
Over Value & Under Value
This is one aspect of your asking price that can be done in a variety ways, and their are many schools of thought on the matter. Some Estate agents will intentionally "Over Value" your property in order to get your business, they know that it will never sell for that price and it wont be long before they recommenced a reduction. Make sure you do your homework before you get your valuation, or better yet get a few different Estate agents to value your property (This service is free with QuickBricksOnline). If one valuation comes in noticeably higher than the majority, those are the ones that are more than likely over valuing your house, it may sound attractive but don't be fooled.
The other issue you may encounter is "Under Value" Some Estate agents may come in with a price that is lower than market value, it may sound odd but if they manage to put your property on the market at a much lower price than comparable property then it will sell much faster. This may be a good thing for you if you need a quick sale, but this sort of activity has an adverse effect of your local market and it could also lose you thousands. Don't be fooled by someone who says they will guarantee to get you 100% market value within 30 or 60 days. If you hear that guarantee, then the chances are that your property has been Under Valued.
A good tactic is to intentionally inflate your asking price SLIGHTLY. It has become common for buyers to ask for a slight reduction in price simply because haggling has become a normal part of the selling process. You can offer a reduction gladly if you have slightly overvalued your property to begin with (but not enough to price it out of the market). Getting this balance can sometimes be a bit of a guessing game if you don't have an experienced Estate agent, but a quality Estate agent will know exactly what price to put on your property.
Getting on the market
Now your house has been valued it is time to actually get it on the market. Believe it or not there are still plenty of Estate agents who don't advertise online. Over 90% or prospective buyers start their property search online, and your Estate agent should be taking full advantage of this form of advertising.
Make sure your Estate agent advertises on the major online property portals! Don't be overly impressed by a well framed and backlit picture of your home in a high-street window, this is a traditional and somewhat effective marketing technique, but we live in the digital age, and online is far superior.
Once your property is being advertised consider having an open house, having a few people viewing your house at the same time can show buyers that others are interested, and can help get you that all important asking price.
Modern Estate agents are now advertising on social media too, check to see if yours does. If they don't, consider using an agent who does. Social media is becoming a huge outlet for Estate agents and will become even more important in the future. For an example of how an agency should be utilising social media, search QuickBricksOnline on Facebook, Twitter, or Instagram.