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Setting a competitive asking price

Ross McKenzie

Setting a competitive asking price: Strategies for success


Determining the right asking price is one of the most crucial decisions when selling a property. A well-researched, competitive price attracts serious buyers and sets the stage for a smoother sales process. Today, setting your price just fractionally to high can be the difference in a great result, or a poor one. This guide outlines strategies for setting the right asking price, potential challenges, and solutions to navigate this critical stage.


1. Researching market conditions


Understanding the current market is essential for setting an informed asking price:


  • Analyse recent local sales: Reviewing sales data for similar properties in your area provides a benchmark. Your estate agent can supply information on properties recently sold, helping you assess realistic pricing.

  • Consider market trends: Markets fluctuate, so take into account whether prices in your area are rising, stable, or falling. A rising market might allow for a higher asking price, while a slower market may require more conservative pricing.

  • Factor in property demand: If there’s high demand for homes in your area, competitive pricing can attract motivated buyers quickly. Conversely, low demand may require a more flexible approach to pricing. Your estate agent will be able to guide you through this - make sure they do!


2. Getting a professional valuation


A professional valuation provides an objective perspective on your property’s worth, ensuring your price aligns with market value:


  • Request multiple valuations: Obtain valuations from two or preferably three estate agents to get a balanced view. Each agent may have a slightly different approach, so multiple valuations give a more complete picture.

  • Avoid overpricing: An overpriced property may deter buyers, leading to extended time on the market. Poor estate agents will try and over value a home to try and win your business - don't let this happen and ask them to evidence their research. A balanced, accurate valuation can prevent future issues.

  • Ask about valuation strategy: Agents may have different pricing strategies, such as setting a slightly lower price to encourage competition or a higher price for more flexibility in negotiations. Understanding each agent’s approach can guide your decision. Context is key.


3. Understanding potential bottlenecks


Pricing can impact other aspects of the sales process, so it’s important to anticipate potential challenges:


  • Extended time on the market: If a property is overpriced, it may linger on the market, potentially reducing buyer interest and impacting your negotiation position. You don't want to be on the back foot.

  • Appraisal issues: Mortgage lenders will require an appraisal, which can affect sales if the appraisal doesn’t match the asking price. Accurate pricing reduces the risk of appraisal discrepancies.

  • Limited buyer pool: A higher asking price may exclude some buyers who would otherwise be interested. Setting a competitive price ensures your property appeals to a wider audience. Make sure your property is also placed on a portal's price banding - your estate agent can advise on this too!


4. Adjusting the price if needed


Sometimes, market feedback may indicate a need to adjust your price to keep the sale progressing:


  • Monitor interest and feedback: If your property hasn’t received offers or has low viewing rates, it may be time to reassess the price. Your agent can help gauge feedback from potential buyers. This should be done within the first 2-4 weeks if no interest is being received.

  • Consider a price reduction strategy: If a reduction is needed, a minor adjustment can sometimes generate renewed interest. Consulting with your agent on how and when to make adjustments can keep your property competitive.

  • Stay flexible in negotiations: Buyers may make offers lower than your asking price, especially in a slow market. Being open to negotiation can keep the process moving while still aiming for a satisfactory sale price.


What Open Moove suggests next


At Open Moove, we recommend these steps for setting the best possible price:


  1. Consult multiple estate agents: Comparing valuations and approaches from different agents helps ensure you make an informed decision.

  2. Stay open to market feedback: Regular communication with your agent and monitoring buyer interest can signal if an adjustment is needed.

  3. Use Open Moove’s market analysis tools: Our platform provides insights on local market trends and recent sales to support your pricing strategy.


Setting a competitive asking price attracts motivated buyers, ensuring a smoother, faster sales process and helping you achieve the best possible outcome.



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