In a highly competitive & price-sensitive market, perhaps it’s no surprise that setting the right asking price is a challenging task with a need to balance emotional attachment with evidence and common sense.
It can also be tempting to turn to online property valuation tools when first exploring the value of your home. Online valuations do not account for all of the variables which can affect your property’s value, so gaging your home’s worth on the ‘house next door’ isn’t always a reliable method.
From the condition, age and internal specification of a property to any structural extensions or improvements, your property’s value can differ hugely from those recently sold nearby. Consideration will also need to be given to how much demand there is from buyers.
So, why is entering the market with a realistic price so crucial?
Without a doubt, the price of your property is the first thing a buyer will note. Get the price right and a prospective buyer is likely to contact your estate agent and book a viewing. Get the price wrong and your property will simply to be overlooked.
Unlike fine wine, properties sat on the market do not get more attractive with time – in fact, homes listed for a prolonged period of time can start to appear less attractive when compared to freshly listed, more competitively priced homes. On the other hand, you could be doing your home a disservice by asking too little for it and ultimately allowing a buyer to pay well under the odds for it, so balance is key.
While there are several important factors to consider, our expert team has highlighted the three most important considerations when agreeing on the value of your home:
1. Local sales
Whilst we don’t advise simply matching a neighbour’s recent sale price, it is helpful to research sold prices in your area. If there’s not been much activity on your street, take a look at all sold properties within half a mile of your address. You’ll be able to compare the agreed sale prices between properties which bear resemblance to yours and also review other important information like how long the properties were listed for and whether or not those properties were purchased at their asking prices.
It is also vital you recognise valuable local amenities – good transport links, recent town regeneration, and highly-rated schools can have a big impact on a property’s asking price. All of this information is will be known by your local Romans estate agent.
2. Market trends
With the UK’s ongoing economic uncertainty, it’s important you keep on top of current affairs and how these could impact your property sale. Insight into local market trends is particularly important as your local economy can often be more impactful than nationwide trivia, such as the effects of Brexit.
For example, the relocation of a large company to a location near you, or the promise of your town’s regeneration can have a measurable effect on your property’s worth.
3. Property type
It is important to bear in mind that the tenure of your property can also have a weighty bearing on its eventual sale price. A leasehold house is unlikely to achieve the same sale price as a freehold house, even if the properties are identical.
Leasehold properties – in general – demand higher levels of maintenance, such as ensuring its lease length is maintained. Leasehold properties with a lease of 80 years or less will generally start to decrease in value, as the number of mortgage lenders willing to support the purchase of such a property declines. Lease extensions can cost upwards of £5,000 and often demand expert knowledge from qualified solicitors or surveyors, making the process both lengthy and potentially expensive.
Therefore, if your property is at risk of attracting a limited pool of buyers, it’s imperative you understand exactly how to improve your chances of attaining a healthy sale price. In most cases, the cost of arranging a lease extension prior to listing your property is covered by the eventual increase in your home’s value. Contact your local Romans branch if you would like to enquire further about extending your property’s lease.
Want to know the true value of your home? Arrange your free, no-obligation valuation today!
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