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What price should I sell my house for?

One of the most agonising decisions when selling your home is what price to put it on for. Different estate agents will suggest different figures. Put it on too high, and you might not sell it. Put it on too low, and you might get far less than you should.

The basics

This is one of the biggest financial decisions you are going to take in your life – and it is as much art and luck as science. Once you have done everything you reasonably can to make the house more appealing to buyers (see Top Tips – How to make your home more saleable and valuable), you then need to stack the odds in your favour as much as possible by doing your homework. Remember, it is you, not the estate agent, who decides what price to put the property on the market at.

You need to adopt a two-stage approach:

  • First, decide a best estimate for the likely price the house might achieve
  • Second, decide your selling strategy. Factors such as the speed you want to sell the house will affect what price you ask for it

Get a free instant home valuation online now >

Do not just rely on the valuations by others – even professionals!

It is very tempting to rely on the valuation given to your home by estate agents or mortgage lenders – but it can be a mistake. They can have their own agendas, which may well be different from yours.

  • If the mortgage valuer or estate agents are not locals, they will rely on house sales statistics from sources such as the Land Registry, which will not necessarily give them a well informed insight into very local variations in house prices, including such factors as local school catchment areas
  • Local estate agents have good local knowledge, but they might have been suggesting an unrealistically high valuation in order to get you to instruct them.  Choose an estate agent based on their track-record of achieving asking price, an indication that they are more realistic about price — use our free estateagent4me tool.
  • Mortgage valuers often give extraordinarily low valuations in order to protect the interests of the mortgage lender.
  • The difference in valuation given by an estate agent and mortgage valuer can be as much as 20% of the value of the property

Do your own research

The only solution is to turn yourself into an expert on local house prices – both how much houses have actually sold for, and how much they are on the market for.

  • Use our free instant online home valuation tool to get a high and low estimation, as well as possible rental income
  • On our estateagent4me tool you can enter your house details and click the button “Help Me Estimate” to see how much other houses in your area or street have sold for or are currently on sale for. Check it out now >
  • In particular, find out what similar properties have sold for.
  • Be aware of what is happening to local house prices, as the dynamics of the market will inform whether you can be optimistic or pessimistic about the price you will get. Our House Price Watch Infographic can give you an idea of the general trend in house prices in your area: see the latest HomeOwners Alliance House Price Watch report

Remember that negotiation is presumed

  • Buyers presume there is space for negotiation in the asking price, so you should be prepared to adjust for that
  • Ask for 5-10% above what you would be happy to get for it

Factor in stamp duty

Decide your house sale strategy

Once you are sure there is nothing else to learn about what price your house should be worth, you need to decide what strategy you use for selling it. This is as much art as science – it is not only a topic of constant debate among estate agents, but different countries have different approaches.  Your estate agent will have experience of what works locally, and you should certainly listen to their advice – but you should not feel compelled to accept it. A big factor though is how quickly you want to sell.

Are you keen to sell the house quickly?

If you need to sell quickly – probably because you are already committed to moving elsewhere – then you have a couple of options:

  • Put the house on at a lower price. Estate agents often recognise this by saying a property is “priced to sell quickly”. You are more likely to attract speculative cash buyers this way, which can make the whole transaction very quick
  • Use sealed bids. Particularly if there is a lot of interest in your house, and the market is hot, you can ask for “best and final offers” by a certain date. This eliminates a protracted sales process, and can result in good prices:
    • Because you ask for “best and final offers”, buyers usually put in good offers – often significantly above the asking price
    • The danger is that there is no interest, and you just get cheekily low offers – leaving you back at square one
    • Remember, that an offer is not legally binding, so you do not have to accept any of them

Can you afford to take things slowly?

If you can take your time, you should not feel pressured to sell at a price you are unhappy with. You can take two basic approaches (effectively the difference between UK and Dutch auctions):

  • Start high, but be prepared to go lower. If you sell at a high price, great. If you do not, then you can slowly reduce the price until you do sell. You will have thoroughly tested the market
    • The danger of this approach is that if the house sits on the market a long time, it might become blighted in the mind of potential buyers, asking “what is wrong with it?”
    • You could reduce this risk by taking it off the market for a while and then start afresh a bit later. You can obviously only do this if you have a lot of time
  • Start low, attract attention, and try and get a bidding war going, with purchasers bidding each other up. This obviously works best in a hot market with lots of willing buyers and few properties for sale. It is usually combined with not accepting any offers for the first period (a couple of weeks or more). This general approach is rare in the UK, but popular in other countries such as Canada.

 


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3 Comments

  1. Dear Summer,

    Do you have a look for further reading about this on point 6 of our guide: Shared Ownership: What to watch out for. The way the sale process is handled varies depending on the scheme you bought through. In the Share to Buy scheme, for example, they acknowledge that housing providers receive concerns from vendors that the amount the home has been valued at, is under, or over what they expected. They advise that your housing provider can challenge the surveyor on your behalf but would require 3 comparables of similar properties that have sold within the last 3 months (you already have sought some comparison which will help you in trying this route). You can also request to be put you in touch with the surveyor to discuss your concerns with them directly. Also, your lease is below 90 years and we normally advise to extend in this situation, as longer leases are more valuable than shorter ones. Read more about extending leases on our guides: Should I extend my lease? and Step by step guide to extending your lease. Hope this is helpful.

    Kind regards,

    Sophie
    HomeOwners Alliance

    Comment by Sophie Khan — March 3, 2017 @ 2:58 pm

  2. I have a shared ownership property (1 bed, 55% share) that I wish to sell.
    Terms and conditions of the purchase states that all sales must go through the housing association, in the first instance and any valuation conducted must be by one of their preferred providers. This I have done.
    However, I received the valuation report which has come in £225,000. The sales price of two like for like properties on Land Registry is £255,000 (one of which is a shared ownership property at 50%). I’m being told by the valuer that the reason mine is lower is due to the lease length, which is 73 years (all properties where I live where built in the same year, with a 99 yr lease). I had it valued by an estate agent (Purple Bricks) they valued it at £269,000 last summer.
    I’m not happy with £225k! Do you have any advice or know what direction I may go into to find any further advice, particularly how a lower lease may affect a property value?

    Many thanks

    Comment by Summer — February 20, 2017 @ 5:11 pm

  3. Agent sold our house Aug/Sept time, but contracts not exchanged. Meanwhile another identical house is on market for £20,000 more than ours.
    On reading your details I am surprised to see if an agent finds a willing purchaser they are entitled to commission, even if the seller withdraws.
    Is there any way we can take the property off the market without incurring the fees.
    We are clear of the 20 week scenario.
    Your help would be much appreciated please.
    Carole.

    Comment by Carole — January 4, 2016 @ 4:42 pm

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