Is your asking price right?
Setting the right asking price for your home is often the hardest thing you can do. We all want a good deal, however if you set your price too high you risk putting potential buyers off. Set it to too low and you’ll always be wondering could you have achieved more.
There are many factors which determine the true value of your home. This ranges from the area, the age, the size, number of bedrooms, garden, parking, and overall condition. Some will say a house is only worth what will someone will pay for it. In some ways I agree with this however I also think we can help influence that thought too.
When it comes to house pricing, most people turn to an estate agent. After all, valuing and selling houses is what estate agents are all about. What happens though when an estate agent tells you your home is worth more than you expected? Should you believe them? Should you raise your own expectations and hopes?
I’ve been doing some simple research. I’ve based it on Lancaster however the picture is very similar in Morecambe. It’s quite to do easy courtesy of Rightmove. In the last 3 months (July- Sept) 293 properties have reduced. Some agents have reduced almost 40% of the properties they have listed for sale. These figures are quite scary. I’m not going to say we are perfect, but luckily we are the lowest percentage in our area!
Why is it happening
There are numerous reasons. But before I give you my thoughts, I will point out that no estate agent is perfect. Occasionally we do get it wrong. Some houses, simply put are more difficult to value than others, especially if they are unique. If though a house is on a housing estate, or a neighbouring house which is similar has recently sold, then there is little excuse. Here are some reasons at to why over valuations happen.
– Out of town valuers
Always ask the valuer that comes to see you, what experience they have in the local market. For example, if they are covering an area they don’t normally work in, you might find their valuation higher than expected. This can also happen when a valuer covers a wide area. It’s very difficult to become an expert if you are covering a very wide area which has a vast difference in prices! In some area’s prices can change from street to street!
Some estate agents are so short of houses to sell, they will give you over inflated figure in order to impress you. In some estate valuers are targeted to get your house on their books. Their own personal income depends on it and sadly their need ends up coming before yours.
This is very similar to the out-of-town valuer. An inexperienced valuer might be a little too enthusiastic. They might be a tad too eager. Maybe they haven’t done their research properly. Not having the experience also might mean they aren’t entirely sure what to look for.
– The client
Sometimes a client wants more than a house is really worth. They tell the estate agent want they want. Sometimes saying it’s what they need. However this is often when things can go wrong. Every house has its value. Push it too far and a buyer simply won’t look. Everybody loses out however it’s often the agent that is blamed.
Our advice is simple. Be realistic. Do your own research. Check out what other similar homes have recently sold for. Invite out 3 estate agents who have sold properties similar to yours. If the price quoted to you sounds too high, and the agent has no comparable evidence to back up his or her thoughts, it probably is!
My name is Michelle. I am the branch valuer at JDG Estate Agents. I’ve been valuing home in Lancaster for over 14 years. My colleagues Nina and Darren across in Morecambe have both worked in their local market for over 15 years each. We know Lancaster and Morecambe well. Can we help you move? Please call us on 01524 843322