George Berry, Residential Area Manager looks at the importance of your guide price when selling a home and what buyers and sellers can do to achieve the best results.
When selling a house, the higher the guide price, the more significant comprises become. When the property market is buoyant, people are more likely to overlook compromises for fear of escalating prices and missing out. However, as soon as the market starts tightening the compromises loom larger.
Therefore, it is crucial when setting a guide price to not be too greedy. Show a buyer you are mindful of the flaws and you have factored them into the pricing. Buyers will appreciate this and it will give you a far stronger hand when they try to negotiate.
There is no getting away from the fact that the market is challenging. Agents that say otherwise are trying to dupe you and you will only be left disappointed by overpromising and under- delivering.
Unlocking the market
There are many people wanting to move but so much of the market is held up but the reliance upon linked transactions and dependant buyers. Many of those are struggling to sell for two reasons.
Firstly, many buyers are struggling with mortgage affordability and the second is overpricing.
I have never witnessed the country and property market come to a pause in the anticipation of a budget like we have just seen. It goes to show how instantly reactive we have become and that is because every pound in our pocket counts and those available pounds are dwindling with tax levels and the cost of living being so high.
If interest rates drop and mortgage rates follow, then we will hopefully see the market start to unlock as this will give more buyers the confidence and funds to move.
What are buyers looking for?
These are some key factors that may help protect the value of your home if the market is tough.
For some time, it has been widely known that there is a ‘Waitrose Effect’. Research by Property Solvers in 2022 showed properties in locations serviced by a Waitrose had higher values than those without. There will be exceptions to the rule for other reasons but generally it is deemed if the location is acceptable for Waitrose then it is a solid area to invest.
Transport links are very important. They always play a pivotal role so when you are selling it will give you a wider buying audience. Towns that have commuting stations will prove to be more resilient as they will appeal to buyers moving into the area. Easy access to Norwich or Diss station is a strong pull for those needing to get to London, or Attleborough and Wymondham for those needing Cambridge.
Schools are hugely significant. Many families will base their entire search around a school catchment. When looking for a school, parents look at Ofsted ratings so it is logical to assume that when looking for a house the school may dictate the location. Therefore if you buy a house because of a good school nearby then your buyers will do the same when you sell.
These three factors are just a handful of things that can give you a wider pool of buyers but also protect the value and saleability of your home.
If you live in areas where you do not have these, please don’t worry. It just means your home may have to work a bit harder in a tougher market. You can help this.
Presentation affects price
There is a direct correlation between price and presentation and if you ensure first impressions are excellent and your home is well-presented, you will put yourself in a far stronger position versus those near you on the market.
That just leaves sensible guide prices. Even in the tough market we are in, we are seeing competition being generated if the guides are attractive. Work with what you have to make it the best it can be and you will ultimately achieve the best result.
This article first appeared in the Diss Express.
