When it’s time to put your house on the market, knowing if you have priced it correctly can be an incredibly stressful task. But understand that property value in the UK is a complex mix of elements and that achieving 100% accuracy may not always be possible. So don’t take online or estate agents’ estimates at face value – use multiple resources when determining how much your house should sell for!
Incorrectly assessing its value can lead to it sitting on the market for longer than expected and requiring a price reduction in order to entice buyers.
Having a competitively priced property is sure to create lots of buzz and potential for multiple offers. This is an ideal scenario for sellers!
Are estate agent valuations accurate?
No, estate agent valuations can sometimes be too good to be true.
In part this is because property values are a tricky market to navigate – the price is determined from what buyers in the present moment would offer, making it difficult to accurately estimate its worth.
A lack of research can lead to overvaluing a property, but Some estate agents will not even try to give an accurate valuation. Instead they will try and produce a figure that will encourage you to work with them. It can be quite enticing if an agent says they may be able to sell your home for more than you thought it was worth. If you do decide to go on with the agent that promises you £20,000 more – DO NOT SIGN A CONTRACT!
To get the most effective valuation of your home, it’s important to ask your agent for concrete evidence. They should be able to provide examples of comparable properties in nearby areas that have sold recently and explain why they think yours will sell higher or lower than those prices. Mortgage valuers also typically analyse comparable properties. So gathering this info is an essential step when pricing a property to ensure there is no down valuation.
Ask your agent to give you two scenarios – a ‘best asking price’ and a more “competitive asking price”. This will provide an indication of where in the market range it should fit, giving you clarity on the price you should achieve.
Should I conduct my own research?
Always!
A savvy first move is to assess the market in your area. Compare similar properties and note any differences that could impact price. Location can make or break the value of a property. Not only does it matter to be close to desirable amenities, but also having enough distance from any less-desirable locations – like loud night clubs! So depending on where your house is situated, you could potentially see quite different asking prices for similar homes just steps away.
Next and more sensitive is the condition of the property. For example, a listed home with single-glazed windows which is in need of significant repair is almost certainly going to achieve less than an identical property that has double glazing and is in good condition.
With a few clicks, you could have your home’s value at your fingertips – but can these online valuation tools be trusted? The accuracy of the outcome may differ depending on what it is measuring. To reach an estimated worth, many turn to historic prices and use that as a basis for price growth in terms of locality; however, they are mostly just algorithms giving an average from all sold properties in the area. The Zoopla estimate tool is notorious for giving unrealistc figures!
We strongly recommend arranging for at least three estate agents to visit your property. But remember, do your own research beforehand and ask the agent to show you their comparable properties.
How do you know if your house is overpriced?
The first sign that your house is overpriced is if you’ve not had any potential buyers come for a viewing within your first two weeks on the market.
The first few weeks that your property is on the market are the most important. It’s during this period that your property will get the most views. If these views aren’t translating into in-person viewings, something is wrong.
The other signs that your property may be priced too high, include:
- Getting a lot of people coming to see your property, but not receiving any offers
- Other houses nearby are selling quickly, and you haven’t yet received an offer
- Your asking price is really different from other house prices in your local area
- Interested buyers dropping out of the sale because their mortgage provider has valued your property at less than the amount your buyer offered.
Always ask your estate agent for the “Property Peformance Report” from Rightmove. This will show you all the factual information about your property such as total views, how it is performing to similiar listings etc
Plus, agents like often hide behind this data as it holds them accountable.
If you are ready to find out your property is worth you can book a valuation below for a day and time to suit you.
Thank you for reading
Gary
