Higher or Lower – Getting your asking price right

There are various factors influencing the value of a property, from location, age and size, through to things like heating, windows and appliances. In short, it is fair to say each property is wholly individual. With this in mind, the valuation system used by Estate Agents, usually calculated from recent sale prices of similar properties in the area, is not an exact science and can also be subject to Estate Agent “inflation”.

Sellers, who genuinely believe their property has been incorrectly valued, at either end of the scale, should consider the following points before approaching their estate agent:

-          The recent sale prices of similar properties in your area don’t always tell the full story. Your property may be on a corner with a bigger garden, have newer double-glazing or more modern appliances within, equally, the recently sold properties may have these advantages. Ask yourself objectively, does the current value give a fair assessment of these factors?

-          If you believe your property is undervalued, as is quite often the case, consider that sometimes beginning with a below market price could generate more interest and result in a higher sale price, than if the asking price was higher to begin with.

-          It is widely speculated that setting your property price just below a round number will attract more potential buyers than setting the asking price at the round number itself. Think £199,950, instead of £200,000, this may explain an Estate Agents valuation of your property.

-          Costs involved with buying a property include Chartered Surveyor fees and stamp duty fees amongst others. Bear in mind the percentage of stamp duty that must be paid increases with property prices, so you may attract more buyers by setting your asking price below a stamp duty threshold – for example at £249,950 rather than £250,000.

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