publication date: Feb 13, 2009
author/source: Kate Faulkner
Sellers' Property Problems Series
Article Five: How do I know what is a fair price for my home?
That's a good question, particularly at the moment! The answer is also increasingly difficult. It used to be 'a fair price is what the buyer can/will offer and what the seller is willing to accept'. In the current market, this has actually changed to 'the price of a property is what the buyer can afford to offer and what they think they can get away with and how desperate the seller is to sell'! For example, having analysed some properties recently a 'fair price' according to the data would be around £135,000. However due to the lack of buyers and huge supply of similar properties available for sale, when you talk to agents and look at what is selling, the property wouldn't sell for more than £110,000. That is the reality of the current market situation.
The one myth to face at first however, is there isn't one price for your home, the value will be a minimum of x and maximum of y. The difference between the two, could be as much as 15%, depending on who's in the market for buying and how many properties that you are competing against, and how much they are up for sale for.
To price your property fairly you should:-
1. Check which agents have sold similar properties for recently and at what price, find three agents like this to value your property.
2. Ask the agents for three prices: the marketing price, a price to accept and a price to sell within two weeks.
3. As a seller you need to decide before you sell, what is the minimum price you'll accept, then ask the question, is there a similar property that has sold for this much nearby?
If you aren't prepared to price your property fairly in this market and have a view that you 'won't sell it for less than', unless this amount is 10-20% below its true market valuation, then it probably isn't worth putting your home up for sale at all.
Is your property marketed at a fair price - need an independent valuation? Email firstname.lastname@example.org or buy our DIY valuation factsheet for £4.89.
For more information visit our selling a home section where you can download our Selling a Property eBook and refer to our Property Valuation Services.