I’m unsure of what price to sell my home for. Are there typical price bands in which people search for homes?
Q: I am thinking of putting my property on the market around the £250K mark. I live in a remote area, so it is difficult to find comparable properties. Are there any typical price bands in which people search for homes?
There are definitely patterns to pricing and these should best be looked at in the context of how buyers themselves search.
Things have changed recently though in that when the stamp duty rules have now changed whereby although there is a step change in the duty charged above £250,000 it is no longer so retrograde as to apply to the full sale price retrospectively. This means that whilst 5% is charged above £250,000 (as opposed to 2% otherwise) it is only paid on the amount ABOVE the threshold.
Consequently, whereas buying above £250,000 was at a significant extra cost, now it is less onerous. Those looking to pay £250,000 will consider, say, £260,000, as the additional duty is pretty minimal.
That’s the financial consideration.
There is a psychological element at play in my opinion, and that is the fact that buyers tend to search in fairly ‘clean’ price chunks, if you will. So, a typical search would be ‘£200,000 to £260,000’ the upper limit reflecting a supposition that sellers will accept an amount lower than their asking price. Always dial in a bit of wriggle room but no more than 5%, or else you will price yourself out of reach.
Tip: Don’t price at £249,995 but at £250,000 instead. My reasoning is that the portals such as Rightmove will show your listing at £250,000 in both a search from say £200,000 to £250,000 AND £250,000 to £300,000 for instance.
Further tip: The market is slowing. If you and / or your agent are unrealistically optimistic on asking price, you will not sell. Be sensible by accounting for local comparable properties that have SOLD (on market comparable prices are not so indicative).
Answered by Russell Quirk, eMoov
- What price should I sell my house for?
- How to make your home more valuable and sell faster
- How much is stamp duty and when do I pay?
- How should I choose an estate agent?
- Compare online estate agents
- Conveyancing process explained: For Sellers
- Step-by-step guide to selling your home