Selling Your Home? Where To Pitch The Price

Why A High Asking Price Might Be Something Your Regret.

There have been a couple of headlines recently which have caused us a little concern and, for once, it’s nothing to do with Brexit, football or Donald Trump – well, at least not directly.

First of all, some of the regular research carried out to monitor house prices is suggesting they’re not rising as fast across the UK as they were a year ago.

No doubt, if you’re a first-time buyer, you won’t be too bothered. After all, it’s hard enough to scrape a deposit on a new home together as it is; the fact prices aren’t cantering off at an ever-growing pace is probably something of a relief.

But, if you combine that with an increase in asking prices, then what we’re witnessing is a growing chasm between hope and reality – and the end result could be more buyers facing the grim reality of negative equity if nothing improves.

The Risks of Going High

Of course, you want to sell your home for as much money as possible; that’s perfectly understandable. There are also plenty of estate agents out there who will be willing to play on that and who will win instructions by persuading vendors that they should hike their asking price by £10,000.

But, in the current climate, what we ought to be asking ourselves is if that’s either realistic or ethical.

First of all, if you ask too much for your property, you’re running the risk that your home could be on the market for months. Not only that but, if you then have to drop the price more than once in an effort to attract a buyer, you’ll be risking the irony that it actually becomes harder to sell. The more the asking price drops, the more buyers suspect it’s because there’s a problem.

But, on the other hand, if you do manage to find someone prepared to match or at least come close to an inflated asking price, it may be great for you – but not necessarily for the property market.

Negative Equity Bites

Think about it … If asking prices are rising at, say, 5% year-on-year and selling prices only at 1.5% then surely the time will come when too many buyers realise they’ve paid too much?

“More fool them,” you might think. But if enough people become trapped in negative equity, then the property market risks a malaise. Before long, the number of buyers could drop as fewer risk making a significant loss on their property investment and a downward spiral begins.

If the mismatch between selling and asking prices continues and negative equity becomes more widespread, prices may have to drop – and drop quite a bit – before a recovery kicks in.

So, if you are selling your home at the moment, remember even if you only bought it last year for £250,000, a 1% rise in value is still a significant sum of money. Naturally, you will want the best price for your home and we would certainly encourage any vendor to research what other properties sold in the area recently have fetched.

But, no matter how tempting it may be, if you are selling your home now or in the near future, we’d urge you to keep it real. There are some out there willing to try to win you over by promising huge returns but, although it may sound like easy money, an over-inflated asking price may not be in your interests in the long-term.

 

Get a free valuation from us below.

 

 

A small request: If you liked this post, please share it

I know most people don’t share posts because they feel we don’t need their social share. But here’s the truth…

We built this blog piece by piece, one small share at a time, and will continue to do so. So thank you so much for your support.

A share from you would seriously help a lot with the growth of this blog.

Comments are closed.

  • All Items Below Are Now Included As Standard

    Professional Photography, Floorplan & Description

    We will visit you at your home to get all the info we need for the advert. No need to send anything to us.

    Marketing Video For Your Property

    We make 2 videos for the advert. One for the property websites and a shorter one for social media.

    Interactive Property Brochure

    Now included with all orders is a beautifully presented and wonderfully informative interactive brochure to help a potential buyer make a decision.

    Listed On Rightmove, Zoopla & On The Market

    No other agent will put a property in front of as many potential buyers. We are one of the few estate agents that list on ALL of the big three property websites.

    Vendor Log In Area

    You will have access to the vendors area meaning you can easily keep up to date with how your advert is performing, viewings and feedback.

    Account Manager

    You will have your own account manager to help with every stage of the sale.

    Full Sales Progression

    Unlike some online estate agents, we will stay with you all the way to completion day helping smooth out and issues along the way.

    Money Back Guarantee

    If you’re not entirely happy with our service, we offer a 30-day money back guarantee from the day you instruct us (with pay upfront option).

    Get An Online Valuation Today

    Simply answer a few questions about your property with some details and receive a valuation by email.

    Online Valuation

    Put Your Property On The Market With Esale

    Get your home on the market quickly. Instruct us now and the photographer will give you a call.

    Place An Order

    See All Our Reviews