Obtaining a fixed figure for the valuation of your home can be a daunting task. Apart from considering the different quotes of various estate agents, you also have to be familiar with the property market to get the best estimate for your home. You have to consider the possibility of your property not selling if the price is too high and conversely being out of pocket if your property is undervalued.
Keep in mind that the final decision for the price is yours to make and not the estate agent. Consider the factors that might affect the valuation of your property, such as seasonality, the speed you need to sell and the state of the market. To help you decide, we have listed below some helpful tips.
1. Consider that the buyers will negotiate the price
Add 5-10 % more than you hope to achieve, so when buyers try to haggle the price, any small reduction will not affect your true end target.
2. Get as many valuations as you deemed necessary
To get the best valuation for your property, ask a variety of estate agents and mortgage lenders to give valuations. However you need to acknowledge that these professionals may have their own agendas. Estate agents may give a higher valuation than normal to try and increase their profit margin. Mortgage valuers, on the other hand, price properties lower than the actual estimate so they can protect the interests of the mortgage lenders. The usual rate of difference in valuation that mortgage valuers and estate agents give is 20%, so consider adding or subtracting that percentage to obtain your final calculation.
3. Research about the property market.
Nothing beats good research. If you're armed with knowledge of the local property market you don't have to rely on estate agents alone. Research local house prices and discover how much properties similar to yours have sold for and how much they're on the market for. Be vigilant with the general trend of your local property market and see whether you have to adjust prices according to the dynamics of the market.
4. Consider if you want to sell quick or want to take your time.
If you have pressing engagements, like moving houses on a certain date, and you want to speed up the process of selling your home, selling your property at a lower price will attract speculative cash buyers. However, if you want to take things slow, you can price your property high and eventually reduce the price to test the market. Another approach is to start low and try to get buyers interested.
The seasons also affect the market trend. Spring is usually the best time to sell a property because, aside from the improving weather, families often want to move during summer break from school.
The inventory of properties available in the market can also influence how your house can be priced. In a buyer's market, there are more properties available for purchase than potential buyers, so pricing your house slightly lower than the competition is advisable. In a seller's market, buyers are bidding for fewer homes, so you can add about 10% to a comparable sale.
Consider these tips so you can get the best value of your home. Furthermore, to obtain the best deal, choose from a variety of local estate agents within your community and weigh your options. Compare their rates and history of selling in your area. You can select the estate agent who has a price within your budget and a service that will sell your property for the best price.
If you need a property agent to acquire the best deal for your property, get a more personalised quote and choose Kayabee today. If you wish to speak with one of our advisors or have any enquiries, contact us at +44 203 291 1907 or fill out our form and one of our friendly team will get in touch with you.
