Pricing Your Property To Attract More Interest.
There is lots to consider when pricing your home, such as - what you need to achieve, over pricing or under pricing etc. In this blog, we will discuss how to price your home correctly.
The marketing price is put in place to entice prospective buyers, now this might sound obvious, but time and again we witness over inflated asking prices, which leave the seller both frustrated and at risk of reduced interest levels - which ultimately lead to much lower offers, due to the perception of low demand.
Now, bear in mind that the marketing price is not the true value of the property and it's purpose is to attract maximum interest.
Quick Tip: This should be based on factual evidence and not simply be the price that you want to achieve or that you'd prefer, nor should it be the price that an estate agent suggests without solid evidence to support the valuation.
The wrong marketing price, could seriously damage your chances of achieving the best selling price. Too high and you run the risk of not attracting enough interest, whilst too low, you may attract people who are unable to pay the correct value.
To give you an example, you and your estate agent may agree that your property is worth somewhere in the region of £395,000. Now there are multiple way's you could decide to market your property here, such as:
1 - £375,000 - £400,000 Guide Price; or
2 - £395,000 Asking Price; or
3 - £399,995.
Now assuming your properties value is in the region of £395,000, example 1 could lead to lower offers, as it may attract buyers with budgets nearer to £375,000, whereas example 2 & 3 may help you achieve the perceived value or slightly under. However, let's throw a 4th option into the mix - an asking guide price of £400,000.
Pricing at £400,000 in this situation, would help you appear in searches on Rightmove & Zoopla's filters UP TO £400,000 and FROM £400,000, meaning your property would appear in more searches, which means more enquiries, more viewings and so on.
As a secondary example, if your properties value was closer to £375,000 - say £380,000, then perhaps a Guide Price of £375,000 - £400,000 or Offers over £375,000 might be more suitable.
When deciding on a pricing strategy, it's important to remember that you should Price to Entice - you want people to notice your property advert and book in to view.
Quick Tip: Use round number pricing that falls in line with the search filters on Rightmove and Zoopla to your advantage. But before you do this, you need to identify your target market with your estate agent.
The last thing to consider would be to agree on your terminology in your pricing strategy. These are generally, Offers in excess of, Offers over, Offers in the region of, Guide price etc. This is generally property specific and should be discussed before you go to market.
Thinking of moving and need some advice?
You can book in your valuation using this link: BOOK VALUATION
Or you can call or email us on:
020 8935 5256