Vendors – Understand The Importance Of Pricing

Many factors are crucial when selling a home, but one of the most important factors is pricing. It is essential to place a realistic and justifiable valuation a property before going to market. Many vendors have placed an unrealistic asking price on their home, and have struggled to connect with buyers.

At Harpers Estates, we are pleased to say we have assisted many local vendors value their home. While the size and condition of a house influences its value, these are far from the only factors which need to be considered. There are many external factors which shape what buyers are willing to pay, which is why it is helpful to utilise the services of a local agent to place a realistic value on property.

Factors which shape property values include local schools, transport options, crime rates, shops, entertainment options, bars and restaurants, leisure facilities and community groups. A wide range of elements need to be considered before setting a value, and this is why local knowledge and expertise is crucial when placing property on the market.

Entering with too high a value will cause problems

Even though some agents recommend entering the property market with a high value, this is a risky move. Yes, if a willing buyer makes an offer at that price, you may make more money. However, even if the buyer is willing to pay an inflated amount, the mortgage lender may not be willing to loan that amount of money.

Lenders will assess the property, and if their valuation doesn’t match the asking price, they may say they aren’t going to assist the buyer. This leads to the deal collapsing, causing the vendor to go back to the start.

Of course, entering the market with an inflated value will make it difficult to connect with buyers. Most buyers are savvy about the market they are looking at, and will have a good idea as to what prices are relevant. If many buyers think the price is too high, they will not make an offer.

If there is no interest in the property, and the vendor and agent decide to lower the value, this can also cause problems. Some vendors will be suspicious about the falling value, and they may have many questions about the property. Others will avoid it entirely.

Therefore, if you don’t want to hamper your chances in the property market, it is best not to enter with too high a valuation.

Entering with too low a value will cause problems

A vendor that enters the market with a low value is likely to generate a lot of interest in their property. There will be some potential buyers who view this as an opportunity to grab great value for money.

There will be some buyers who are wary of the low price and decide to avoid the property, but it likely the vendor and agent will have a lot of deals to sift through. Also, if the vendor needs a set amount to afford their next move, entering the market at a low value may hamper the next move a vendor makes.

Therefore, it is vital vendors enter the market with a justifiable value, and we can help.

We appreciate these are challenging times. If you are a vendor in Norwich, or you need any assistance about a property matter, please feel free to contact Stobart & Hurrell today, and we will do our best to assist you.