Discover how using the right pricing strategy can increase your sale price
Are you confused by your valuation figures? With so many different opinions, you might not know what to do for the best. This article will shed some light on those figures and give you the answers to your questions before you go ahead with putting your home up for sale.
When an estate agent gives their opinion on the value of a property, it is just that - an opinion but it should be based on comparable evidence, which the agent should go through with you on the market appraisal appointment. Ultimately, it is what a buyer is prepared to buy your home for, but the marketing price is what is used to expose your home to the largest audience. It’s in both the seller's and the agent’s best interest to achieve the highest sale price, the happier you as the seller the more likely you are to recommend the agent to your friends and family. But the issue is, if you aim too high, you could easily over-egg it and a lot of people who apply this approach end up with little viewings and no sale.
Because there is never an exact price for any property, agents will usually recommend a price range to sellers, so the value of your home will be somewhere between X and Y. Of course, using evidence to back up this figure range, based on other properties that have sold very recently and the demand in the market from buyers for properties like yours, the agent will estimate with as much accuracy as they possibly can. Still, it is your circumstances that often dictate the resulting marketing price of your property because your marketing strategy is determined by your timescale and urgency to move.
Each property will have three values that sit within a range determined by the timescale of the seller.
Guaranteed sale price: The figure the agents are 100% confident they can achieve without hassle. It is often on the lower end of the range of figures but will pretty much guarantee you a sale within a reasonably short time. You should choose this price if you're in a rush and need to sell quickly.
Market Value: You will see a sale in a respectable time, but there's no hurry or deadlines and you achieve the figure you will feel is a fair price based on what has sold recently.
Aspirational Price: This would be the top price you're quoted, the most money you could ever hope to sell your home for. There's no guarantee that you will achieve this price and no timescale in which you might receive it. This price could mean that there are no viewings at all because you are pushing the value as high as you can, and you may find that it was a bit much, and you must correct the pricing strategy further down the line.
The problem is that many sellers are presented with these prices and immediately opt for the highest price. Faced with a lower price and a higher price, of course, you want to get the higher price. It's human nature to want as much as possible for your most valuable asset, but you need to be aware that most likely an aspirational price will mean being on the market for a long period of time.
So, what can you do if you want to sell reasonably quickly and maximise your price, so you have more equity to buy your next home? You need to have a plan!
- Firstly, you don't necessarily need to choose the agent that gives you the highest price. In a lot of cases, this can have a detrimental effect on your final sale price, so it’s best to base your pricing strategy on the recently sold evidence.
- Choose the agent you’re most confident has a robust marketing strategy to generate viewings and enquiries from buyers that will positively impact the final sale price.
- Finally, you and your chosen estate agent need to execute the marketing plan with one important caveat. If you're striving for the aspirational price, set a future date to consider the marketing and the resulting interest, and correct that price if required.
People often shy away from adjusting their price if they don't sell straight away, but after two to four weeks of marketing, this is when you would expect enquiries to slow down and become more sporadic. So, the most important thing is to keep the communication open to discuss ongoing strategies to fit in with the market conditions.
There is no reason you can't push for that aspirational price but commit to reviewing the interest levels and pricing regularly. If it works out, that’s great but don't leave your property languishing on the market for months on end. Be proactive and address the strategy if it doesn't work out immediately. We all want to aim high, but you must be realistic!
If you would like more information about how you can market your home to achieve the best possible price, book your free market appraisal.
