If you’re selling a property, deciding the price is likely to be one of the trickiest decisions you will make.
If you market your home at too high a price, you might not generate any interest or sell it. However, list it at too low a price and you may get far less than you should.
Recent research by Zoopla revealed that overpricing a property means that it could take twice as long to sell. So, here are some tips for pricing your home realistically, and the benefits of doing so.
Overpricing your home means it could take twice as long to sell
While autumn is traditionally a busy time of year to sell, getting the price right is key to a successful sale. Zoopla says that “it’s important that sellers remain realistic on pricing” as this could affect your chances of finding a buyer.
Indeed, 1 in 5 homes had the asking price reduced by 5% or more in August 2024 to attract greater buyer interest.
Their research found that homes that need an asking price cut take more than twice as long to sell as homes without a price reduction.
Zoopla found it takes around a month (28 days) to agree a sale where there has been no asking price reduction, but sales take more than two months (73 days) when the asking price has been cut by 5% or more to attract demand.
Moreover, a higher proportion of homes where the asking price has been cut by 5% or more don’t sell at all.
3 useful tips for pricing your home realistically
Ensuring you market your property at the right price can be an important factor in agreeing a sale. So, here are three useful tips for pricing your home realistically.
1. Do your research
If you’re thinking of selling a property, doing some research into local prices can be a great place to start.
Head online and use a valuation service from one of the leading online estate agents, or a service such as HomeOwners Alliance to get an idea of the current value.
Remember that looking at the prices of listings online might be slightly misleading, as that is what houses are marketed at, not what they sell for. You can find out what local properties have recently sold for using the Land Registry website.
2. Get estimates from multiple estate agents
You should try and get a quote from at least three local estate agents for their services.
A local agent will visit the property and provide an estimate of what they think it might sell for, and what their fee (usually charged as a percentage) might be.
You’ll know from your research whether these figures are broadly accurate. Remember that an agent may inflate the price in an attempt to get you to instruct them ahead of the competition. So, you need to agree on a realistic price, not simply go with the highest quote you have been given.
Andrew Groocock, of estate agent Knight Frank, told Which?: “Have they [estate agents] shown you comparable properties? Have they sold a similar home to yours? And what price did they achieve? Agents should provide complete transparency on price, based on facts, so you can make a balanced decision on which agent to instruct.”
3. Remember you’re likely to negotiate a price
As you read above, if you price your house too high then it could take you much longer to secure a sale – and you may end up having to reduce the price anyway.
When you agree on a price, remember that you’re likely to end up in a negotiation with a potential buyer. Zoopla reports that, across the UK, the average discount buyers secure is 3.4%.
However, in London and the south-east, where homes are more expensive and require bigger mortgages, sellers accept an average discount of 4.3%.
2 practical benefits of pricing your home realistically
1. Generates enthusiasm in buyers
The first benefit of pricing your home realistically is that it can generate interest from buyers, and this can help increase competition – and the potential selling price.
Robin Chatwin from national agent Savills told Which?: “Adopting the correct price helps generate enthusiasm in buyers that a more subdued market does not provide. Pricing realistically from the start can achieve excellent premiums.”
Your chosen agent should explain why they have recommended the specific price for your home, backed up with local knowledge.
Think about it like this: eBay auctions that begin at 99p often result in higher sale prices because they generate more interest and competition between buyers. While that won’t always work for a property, realistic pricing could result in a bidding war that bumps up the eventual sale amount.
2. Shows you are serious about selling
Buying a home is a big commitment, so potential purchasers need to know that you are committed to a sale and that you won’t pull out later on. Pricing your house realistically can help to show the market that you are serious.
Buying agent Henry Pryor told Which?: “If you want to attract my attention as a buyer, set your asking price where I would expect it to be. This tells me you appreciate that the market has changed and that you are serious about selling.”
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