We often use our blog to rant about house pricing.
We have commented many times of late that owners are often somewhat over expectant when deciding upon an asking price and estate agents that trot along to provide a ‘value’ contribute to exaggerated prices because they fear losing out on an instruction. They fail to see the nonsense of funding lots of over priced homes on their books.
Many home owners that we speak to believe that the highest value that they are given must be the correct one. Strange that. There’s no logic there at all. It could just as well be more probable that the lowest of many may be the more accurate, surely?
Setting a price in a challenging, buyers’ market is not just a question of sticking a finger in the air and hoping for the best. In 2006/2007 that is exactly what you could do and get away with it on the basis that the market would gallop along and catch up. But when there are, as now, half the amount of buyers and twice the amount of properties available, it becomes quite a different dynamic.
There is a myth though, often expounded to us, that a high price will be ‘ok’ as it will simply lead to someone making an offer.
Lots of choice divided by fewer buyers means that those looking to purchase a home will look at the cheaper, better value properties of your type in your area. They will not view anything and everything available on the off chance that the seller will show a more drastic concession compared to those that are lower in price.
Perform a search of properties similar to yours within a mile of where you live…. Then you’ll see what I mean by ‘choice’.
If you price too high, as many still seem to these days, you simply will not sell.
And don’t forget who decides the price at which you sell. It’s not the estate agent, no matter how flattering their patter and how appealing their valuation figure is. It’s the market itself and a very resourceful and informed market at that.
Even Rightmove agrees with us today it seems http://www.estateagenttoday.co.uk/news_features/Viewers-boycott-homes-they-feel-are-overpriced