What Price to Ask
Before you market your property online with Turtle Homes you will need to decide what price you want to ask for your property. The following guide explains how properties are usually valued and then takes a look at how sellers should approach the current market.
When it comes to the value of a property, there are three things to bear in mind.
- The valuation is simply an estimation of what someone else might pay for it.
- This does not necessarily bear any relation to how much you paid for it, how much money you’ve spent on it since then, and how much you need out of the deal.
- Getting the price wrong can damage your chances of a sale.
Property valuations can be a complex and difficult process. Get the valuation wrong and your property might not sell, or it might sell for less than the property is really worth.
How Properties are Valued
There are three methods of property of house valuation:
- cost approach
- income approach
- comparables approach
The most generally accepted method of valuation in the residential property market is the is by using comparables. You should be able to gain a rough idea of what your property could be worth by looking at local papers, estate agents’ windows, property websites and similar house in the area. This method, therefore, incorporates relevant market conditions and activity within a particular location. Turtle Homes are able to reinforce this by providing an in depth online valuation report which will give you an indicator of property values in your area. To obtain an online valuation report of your house all you need to do is to complete our online valuation form and we will get in touch with you as soon as possible. You should then be able to gauge how much your property should sell for by considering the following criteria:
- the age and type of property,
- the accommodation available,
- the fixtures and features of a property,
- the property’s construction and state of repair,
- the position within the locality and the surrounding amenities available,
- the tenure, tenancies, service charges or any other liabilities.
Before deciding on a price, you may also wish to consider:-
- doing repairs or decorating if this would make it easier to sell the house. (see also our Turtle Homes preparing your property guide)
- arranging a survey if you think there are any major problems that might affect the value of the house, for example, a roof in bad state of repair.
You should also decide in advance if you are prepared to include any extras in the sale, for example, curtains and carpets. These are known as fittings. A price for these can be included in the asking price or a separate price can be asked in addition. There are some items that you must sell as part of the house unless you make it clear to the buyer that such items are not included in the sale. These are known as fixtures and include such items as fireplaces and a central heating system. However, in some cases it is not always clear whether something is a fixture or a fitting so it would be useful for you to draw up a list of any items you intend to remove or are prepared to sell to avoid problems later. It is normal practice for a potential buyer to offer a lower price for the house than the seller is asking. You might therefore want to allow for this by setting you price a little higher than the amount you would like to get.
The Current Market: worth putting it on for a bit more?
We’ve seen a big shift from the days when testing the market with a ceiling-breaking price was common. You might be tempted to do this now, but it’s not advisable in the current market. However optimistic you are about the long-term market, in the short term prices are sliding and the longer you’re on the market the less your house will be worth. Of course, you may strike it lucky, and woo a prospective buyer into paying over the odds with your impeccable interiors and the aroma of coffee. But don’t forget your sale could fall through if your buyer’s mortgage valuer doesn’t agree with your high price.
