First you need to understand people buy with their heart; their head will get your property shortlisted as it is in the right town, has the right number of bedrooms and is within their budget – but so are a dozen other properties. Their heart will guide them to which to view and buy.
So let’s assume we know your house is worth £295,000 to £300,000, but you have it on the market at £325,000 with no offers and few viewings. Let’s see how it works:
People who pay £300,000 for a house usually start off with a comfortable budget of say £280,000 to £290,000 and will find the extra for the right property. They search for all properties from £275,000 to £300,000. In their search your property on the market at £300,000 is the best, it shines compared to those at £275,000. Buyers will view and buy yours as an emotional reaction, they fell in love with it.
Now move yourself into the mind-set of a buyer searching £300,000 to £325,000. Compared to property genuinely worth £325,000 yours looks like the poor relation; it is smaller, not in such a good location or just not quite as nice. The buyer has skimmed past yours and fallen in love with the bigger, better, shinier house. They probably had a comfortable budget of £315,000, they could have bought your for less, but they didn’t even consider it. They didn’t buy with logic, they bought with emotion.
So what have we learnt?
You could ‘test the market’ at a higher figure, but understand that no feedback is feedback in itself. React quickly (4 weeks max) to save your property appearing stale. No one pays to price for a property that’s gathered dust on the shelf.
Beware of the inexperienced or struggling estate agent who tells you a higher number just to massage your ego and win you over. A good agent will get you the maximum the market will pay, not leave you stranded above that figure where you have no option but to watch the price tumble, probably to lower than market value as it has lost its ‘new instruction’ shine.
Lancasters have a network of busy High Street offices in Cowes, Ryde and Shanklin, pop in for a chat.
We have helped thousands of families move home over the past 25 years. You worry about packing and leave the selling to us, we’ve got this.