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You need to do a comprehensive analysis of what is currently on the market and what has recently sold and then take into consideration how many buyers there seem to be for your type of property and also take into consideration the market timing to determine what would be a fair market value. It is then up to you to decide upon an ‘asking price’ strategy; i.e. whether to set this low, high or at market value itself.

 

Also remember when pricing your property, that what you paid for it has no relevance to today’s market value and what you have spent on your property to upgrade it may, or may not have a positive affect on current market value, depending on what has been done.

Rising and Falling Markets:

Firstly, when faced with a falling market house owners should note there is an upside to this.  If you are hoping to move up the legendary property ladder, you will find the extra cash needed for your purchase should be less than before; so this could be a good time to move to a bigger house.

It means that you can afford to take less for your existing property because you will also be paying less for the one you wish to buy. Its the difference between the two figures that you will need to raise and this should be less in a falling market.

The converse is also true for a rising market.

In effect this means that it is best to trade UP in a falling market and DOWN in a rising one (assuming that the long term trend in property values is upwards).

Here are a couple more tips to end up with:

When you are moving in a falling market, its best to secure the sale of your existing place first - by way of exchanging contracts if possible.

This way you will be in a great position to negotiate when buying, even though you might have to move into temporary accommodation in the process.

When selling in this market, it always pays to be particularly realistic about the price you are selling at, since a delay could stop you from purchasing the place you have set your heart on.

When moving in a rising market, it would be best to find the place you want before, or at the same time as finding a buyer for the place your are selling.

This helps the person buying from you, to move more quickly and gives them better certainty; which in turn helps you.

To do this you may need to arrange a bridging loan, in case you might need to buy before you have actually sold your existing place.

Again, be realistic on your sale price as this will help you complete both transactions, ideally simultaneously.

Q: Did you know that an estate agent's valuation is different from a surveyor's one?

 

A: Basically, an estate agent's valuation is a feeling, using their local knowledge, about how much such a property might sell for, during the next 3 months or so.

 

A surveyor's valuation, on the other hand, is a written calculation made by a trained surveyor who will research actual recent sales, and compare those with the property to be valued, adjusting for differences in location, size, style, condition, and changes in the market since the date that the other property was sold.

 

It is this type of valuation that a building society generally commissions when approving a loan, not the estate agent's valuation, because that is not backed up by research and is not usually carried out by a trained or qualified surveyor.

 

Remember, when setting your asking price, that the buyer will almost certainly have a professional mortgage valuation carried out before s/he signs the contract.  This is the main check on what the property is worth and it will help the negotiations if this figure is found to be similar to the original asking price.

 

Q: How do I determine the asking price to be quoted for my property?

 

A: First of all, you need to gain an understanding of what Market Value is. Accurate pricing to market value is the key to maximum market exposure and, ultimately, a satisfactory sale. Accurate pricing can have a significant impact on the sale of your property. Properties priced within the 'market range' generate more viewings and offers, and sell in a shorter period of time. Market value is defined as:-

 

"The price which a willing buyer will pay to a willing seller at any given point in time".

 This is easy to say, but is not quite so easy to determine (for some properties at least).

 

The existing pool of prospective buyers ultimately determines a property’s value. The more buyers for a specific property the higher the price can be. If a property is overpriced then the number of potential buyers may drop to zero. If a property is under-priced the number of buyers can increase dramatically, forcing the "market value" above what it would normally be. The only way to get an idea of what market value might be is to look at what 'similar properties' have actually sold for in the very recent past and then to adjust for property and market differences between that house and yours.

This is what a professional valuer actually does.

You should understand that the market is not the same day after day. It can vary from one week to the next. As an example there are not as many buyers in the market during the Easter and summer holidays or the few weeks before or after. There are not as many buyers in the market before Christmas until after the New Year. So market value is a variable depending on current circumstances.

 

Another important variable is the number of similar properties already for sale, or that come onto the market at the same time as your property. If there are four similar properties on the market at the same time and only two active buyers - then two properties won’t sell. If there is only one property on the market and two buyers, then it might sell in competition and achieve a higher price.

How to determine your asking price

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In the final analysis what successful marketing is about is being competitive.

You can gain advantage with Property Match because you can afford to pitch your asking price slightly below the price you would have to ask when using an agent.

For example, if an agent were to expect to take £2,000 fees on the sale of your property, you would gain the best advantage by pitching your asking price at £1,000 less than the agent's asking price.

This way you and the buyer will both gain from using Property Match; to the tune of £1,000 each in this example.  This is how you can achieve success when advertising through us.

It is OK to quote different asking prices.  You are not breaking any rules by doing that.

You would simply be sharing the savings of your more efficient sales methods, with the buyer.

Here is some more information about how to find the correct price to ask for your property in the current market.