Given the number of tasks that are part of the sales process, it is understandable that many vendors feel overwhelmed when placing their home on to the market. Feeling overwhelmed by the process is a significant step in a person’s life and selling your home can be an emotional time. However, it is critical to prepare for the process as best you can and valuing your home before you place it onto the market is crucial.
Many different factors impact on the value a home holds and you cannot take the average price or value for your area and assume that this is a valid price for you. The condition of your home may be far from the ordinary state of homes in your area, so there is nothing to suggest that the average price is right for you.
Market conditions will impact on property pricing decisions
There is an argument for placing an inflated valuation of your home, but in the current climate, this would be a bad move. In a buoyant market, some vendors and agents have achieved great success by placing an inflated value on a home and then watched as desperate buyers paid this price. The current state of the market is dissimilar to this situation, and buyers are increasingly savvy when it comes to market values and what they are willing to pay.
If you price your home at too high a value, you will limit the interest in your home. aIn fact, you may receive no attention at all, and if there is no interest in your home, you can’t sell it. No matter how appealing your house is or how great a location it is situated in if the house is priced too high, buyers won’t show an interest.
Vendors need to be aware that buyers set minimum and maximum prices for a property when they search online. If your property price is a level that buyers are searching for, these buyers will not even see your home in their search results. Vendors need to ensure as many likely buyers as possible see their home, and the importance of pricing the house in a fair and justified manner is apparent.
Even if you were fortunate enough to find a willing buyer at a higher price, when they have the home valued, they or their mortgage lender might decide to halt the transaction at the current price. If the sale is cancelled, you will have wasted a lot of time and money to be precisely where you were at the start of the process, and you’ll probably have less motivation and energy to sell your home at this point!
A vendor that is looking to make a quick sale may be tempted to set the price of their property at a low level to facilitate a quick sale. Depending on circumstances, this is a strategy that some vendors will consider, but for most vendors, it doesn't make sense.
Don’t put too low a price on your property either
Yes, setting a small amount for your property will generate interest but if you sell at this price, you will lose money. Losing out on money from the sale of the home then impacts on what you intend to do after selling your home, so you need to be realistic as to what you hope to achieve when selling your home.
When you have a realistic valuation for your home, you can justify the price you set. There is no problem in setting a price that is higher than average if your home is better than the average home in your area. Also, if negotiations take place about the price of the house, with a valuation, you can defend your stance and offer evidence as to why you believe in the amount you have set.
If you are looking to sell your home most effectively and appropriately, come and speak with Hunters Forest Hill. We not only cover Forest Hill, but you will also find we are present in areas like New Cross, Peckham, Dulwich and Brockley. When it comes to selling your home in confidence, come and speak with the local specialists.