Competition in the housing market is hotting up as house prices dipped unexpectedly in June. The Guardian reports that prices fell fastest in London and the south, possibly because these areas were disproportionately affected by the changes to stamp duty in the spring.
Colleen Babcock, a property expert at Rightmove, said: “It appears that we’re now seeing the decade-high level of homes for sale, and the recent stamp duty increases in England, have a delayed impact on new sellers’ pricing.”
“Agents have been telling us that sellers need to set a competitive price to have a better chance of finding a buyer in the current market, and it looks like many are listening and responding to that message.”
In light of this news, here’s a look at how to price your property competitively if you are a family who are keen to be settled in your new home in time for the start of the new school term in September.
Ask a reputable estate agent for a valuation
A good estate agents who are familiar with your area of London, such as Hackney, can be an invaluable source of information and advice when it comes to accurately pricing your home. They will understand recent developments such as the latest sold prices and recent buyer demand, and have access to detailed market data.
This will ensure that your asking price is a realistic benchmark against the competition, without underselling or pricing you out of the market.
Present your property professionally
The first place buyers usually look for properties is online, so professional photography accompanied by floorplans can generate more viewings. The best presented properties tend to sell faster, reducing the risk that you will need to drop the asking price at a later date. Clean and declutter your home before the photographer arrives.
Consider applying a fresh coat of paint to any rooms that look tired or have ‘Marmite’ decor schemes. The kerb appeal—the first impression from the exterior—also counts, so ensure the garden is tidy, address any repairs and add a hanging basket or two. If you have a large high-value property, you may even wish to consider investing in professional staging.
Think strategically
In a tight market, buyers will feel more confident about negotiating on price, even if they are really keen on the property. Therefore if you start with a strong but competitive price, then it can give you more capacity to be flexible if viewers or offers are thin on the ground.
Another strategy might be to price slightly below the average price for the area and your property type in order to attract lots of interest. This may spark competitive bidding if your property is in a popular area or has some kind of ‘wow factor’ such as a loft conversion, great outside space, or outstanding condition.
Pricing just below key search thresholds, such as £450,000 rather than £500,000, can give that psychologically crucial competitive advantage and widen your potential market.
