How to make sure that the price is right
The housing market has changed and buyers are now price sensitive, so getting the value right is key to gaining a sale. Here, Mark Manning gives his advice on how to do it.
THE latest research from Hamptons reveals that while the sluggish nature of home sales this year continues to weigh on the housing market, last month saw the traditional post-summer holiday bounce kick into play, though it was nowhere near as bouncy as in the previous two years.
Aneisha Beveridge, head of research, Hamptons, says: “Mortgage rates continued to fall in September.
“This was due to better than expected inflation data reduced the appetite for further Bank of England rate hikes. This encouraged a bit more confidence and began to unlock moves from previously priced-out households.
“Consequently, it was the smaller, more affordable homes that were in greatest demand and where the market has seen the biggest improvement.”
However, she adds a warning: “With some sellers still holding out for last year’s prices, it is the number of homes changing hands rather than their price that is bearing the brunt of the slowdown.
“Stock levels look to have peaked, having surged late last year on the back of the rising time it took to sell. But with fewer homes coming onto the market, buyers are facing less choice than they were a couple of months ago, which in turn is putting a floor under prices.”
Here, Mark Manning, managing director at Manning Stainton and the Northern Estate Agencies Group, has this advice for those who are selling.
The number of properties for sale is almost double what it was a year ago, so there is a lot more choice available.
Increased mortgage rates have also stretched people’s budgets, which has reduced the number of buyers out there, plus we have seen the number of new buyers registering with us drop by 25 per cent over the past month compared to the same time last year.
Increased stock and a reduction in the number of buyers has made it more critical than ever to get your pricing strategy right if you want to sell your home quickly and seamlessly.
Recent research by Rightmove backs this up, showing that overpriced properties that go on to be reduced take double the time to sell compared to those priced correctly initially, and that sales on these properties are also 50 per cent more likely to fall through.
So, with buyers becoming far more sensitive to pricing, it is imperative to get your price right first time when you market your property.
Focus on your property’s microclimate and look at nearby sold prices. When it comes to working out the value of your home, there’s a lot to consider, but by looking at what similar properties close by have very recently sold for, you will get a strong indication of what it is worth.
People often make the mistake of looking at the prices of nearby properties that are on the market. However, those values might not necessarily be the same as the property eventually sells for.
The micro-climate of your property is really important, so always focus on that rather than looking at the wider picture, often reported about in the media.
Just because it is reported that house prices have risen or fallen
by a certain percentage nationally, it doesn’t necessarily apply to your area, so take these figures with a pinch of salt and focus on sold prices close by.
Do not focus on what you might have sold for last year. When people decide to sell their homes, they often think they will get the same price that they would have had they sold a few months or a year earlier.
That is not the case now. The property market has changed and what you might have sold for a few months ago is unlikely to be the same as what you’ll get for your property now. That is not to say it will be lower, it could also be higher.
Another thing to consider if you get a valuation that is lower than you were expecting, is that everything is relative. So, if the price of your home has dropped, the price of the one you want to buy has probably done the same.
Choose an agent that has operated in all market conditions. Estate agents will always be optimistic when they come through your door, as they want to get your property on their books.
My advice here is to get a few agents to value your property and then look at their credentials.
Agents who have been around for a long time and have operated in strong and weak property market conditions will be best placed to correctly value your home and get you a sale.
Don’t be fooled by the one that gives you the top price, which more than likely exceeds your home’s actual value, as you may end up having to reduce the price when buyers fail to bite and your sale time will take far longer.