Choosing the wrong price when selling a property can seriously jeopardise sale of the property. There are three main points to consider when setting the asking price for your property:
1. The valuation of your property can only be based on what a buyer may want to pay for your property.
2. The asking price should not be based on what you paid for the property or what improvements you may have made to it during your ownership or what you hope to get out of it.
3. Getting the asking price of your property wrong may mean that you will be unable to sell your property.
Using a comparable is the most common method used when setting the asking price for your property: comparing your property to others of the same type and location, for example, finding properties that are similar and noting what they have sold for recently or what price they are currently being sold for.
The three main sources of house price information to use for comparables are:
1. Sold Prices– The information on what properties have sold for; these can be found using the Land Registry Database or other house price websites on the internet that provide the data free of charge. However, it is important to bear in mind that the prices revealed in the data are based on prices for which properties have sold for historically –and may not reflect the current market when selling a property.
2. Similar Properties for Sale Local estate agents provide a ready source of information and again the estate agency websites on the internet when selling a property. However the asking price that you see, may not bear any relation to what the property eventually sells for. Additionally, it is difficult to make a dispassionate comparison, as you will always view your property in the best light.
3. Automated Valuation Models – ‘Home track’ is an automated valuation service which provide an online valuation and report on any property in England, Scotland and Wales, for a set fee. Such services produce very standardised valuations and do not take account of the more unusual property. The valuation is given in the form of a price range, which may be of limited use in the current market.
Be guided by your estate agent about selling a property, as well as doing your own research. Estate agents can use their experience of the local property market and their ‘insider knowledge’. Ask several estate agents to get an average valuation when selling a property. Be realistic – an overvalued property will be rejected by the buyers mortgage valuer and if the buyer cannot raise a mortgage on your property, the buyer cannot buy the property.
How do you know the price is wrong? – Regular review when selling a property is essential. Ask your estate agent what the average time period is in which a property of your property’s type and location should sell. Make a note of the date and if your property has not sold within the timescale advised by your estate agent – arrange a meeting with them and review the asking price when selling a property. Compare your property with other properties advertised for sale on the property portals and ask yourself ‘Which property would I choose?’ Ask for details of any feedback after a viewing – if the general comment is that the property is overpriced – lower the asking price.
At iconvey, we are specialists in conveyancing and Property Law with many years of experience. Our experienced and knowledgeable conveyancers are always at hand keeping you informed every step of the way when selling a property. We ensure that you are always aware of the costs at the outset with a transparent fee structure and no hidden fees.
You can obtain an instant quote for your conveyancing regarding selling a property from this website, (just click here). Our quotes are guaranteed, fully transparent and include no hidden extras for a normal conveyancing transaction. Alternatively, simply call us on 0844 225 2061for more information or to discuss your particular needs.
