Every property has 3 different values.
Learn more and find out how this affects you.
When deciding to sell your home, there are many things to consider.
When is the 'right' time?
Which agent will you choose?
And what price will you go on the market for?
It seems obvious that you have some valuations, and the agents tell you what it's worth - so that is the price you go on for, right? But, it is more nuanced than this.
One of the reasons that estate agents don't always agree on a property valuation is that, ultimately, every property has three potential values.
The distressed price
The market price
And the premium or aspirational price
Each of these figures is different and depends almost entirely on your circumstances as the seller. Are you looking for the highest possible price or the quickest sale available?
If you're looking to retire and live off the money you make selling the property, you'll probably be looking for the highest price possible. You may have the time and freedom to wait and aim for the aspirational price. Because every penny counts, you may even decide to spruce things up and do a few jobs before trying to sell the property.
If you have a little time to play with but don't want to hang around forever waiting for the highest price, you will most likely go on the market at the middle option, the market value. There is no pressure with the speed of sale, but you are motivated and keen to get moved.
And finally, the distressed price would be when you are at panic stations. This could be for several reasons, perhaps you can no longer afford the property, or maybe you have found a property that you want to buy and need to get a move on. This is an urgent sale; you need to get a buyer ASAP. There are many reasons a sale can become urgent, which usually needs to be reflected in the price.
Unsurprisingly, the faster you need to achieve a sale, the lower the price will have to be. If you are VERY motivated to have a buyer within a few weeks, your price will need to reflect this. However, if you have all the time in the world and there is no real drama about whether you sell or you don't, then the aspirational price bracket could work for you. Yes, it's likely to take a little longer because the buyers' market will be fewer, but you have time to try and find that perfect buyer who wants your home above any other and is willing to pay a premium to secure it.
If you need to sell very quickly, you don't need to find a 'perfect' buyer that wants your home more than anyone else. You need to find the FIRST buyer that has the money and will pay your price ASAP.
So you can see the variables at play when pricing a property are not simply bricks and mortar, and it doesn't always come down to location. The main contributing factor is you. What are your needs and requirements for this sale? If you need the maximum amount for the property but haven't got time to wait, you will need to compromise on the marketing price a little to accommodate a slightly faster sale.
If you set a lower price for your property, you can assume that more potential buyers would be interested in the property. This is because the property will seem like good value to a broader range of buyers.
Conversely, if the property is priced at the highest of the price bracket, you will need to find a buyer that falls in love with your property and is willing to pay the highest price to buy it. Obviously, there are going to be fewer buyers that will find your home perfect.
So, discuss your timescale and plans for moving with your estate agent, and they will be able to tailor the marketing price and strategy that fits your goals.
If you have any questions at all, get in touch with our team of property experts today to discuss your move.