It is a natural instinct for many sellers in Harrogate to think that it’s a good idea to go to the market with an over ambitious asking price.
And why not ? – given that our overall local market is so buoyant and demand for good quality homes in the town in every price range so strong.
If only life was that straightforward.
Its certainly true that such an approach in Harrogate carries with it a fair chance of an asking price offer – or near asking price offer – but there are also significant downside risks.
Recent national Rightmove research have shown that during a time of slower price increases its more risky for sellers to over-price their property. Additional analysis also shows that a property is 40% more likely to sell if priced correctly when it first goes to the market. A recent survey of estate agents in England by Rightmove has reported that we are now living in a more price-sensitive market , with buyers reluctant to even make enquiries with the agent if a property is too highly priced.
In short, Rightmove states the obvious – that an over-priced property deters buyers from viewing a home.
We agree with Rightmove – and it’s the reason why we take so much care in calculating the optimum asking price on all of our sales instructions and bear in mind all the critical factors of the sale . Price must of course accommodate the unique circumstances of each individual seller and their property. Sadly the infamous 3 D’s often dictate the asking price desired ie Debt / Divorce / Death. By debt we don’t mean eviction and hostile actions by a lender but rather changes in financial circumstances where for example a couple downsize to reduce their monthly outgoings and release funds to a pension pot. The time scale on this sort of lifestyle planning means that a property can be marketed at an optimum time / price – say in the Spring or early Autumn – and the seller is content to hold out for a target price. A divorce situation in some cases is just the same. Both parties usually want to maximise the selling price given that two new households are often required and both need to achieve the asking price .Death is often as different again, especially in the case of a deceased estate. Quite often the executors want a speedy sale. Here the imperative is to price the property at a realistic level and attract as much interest as possible.
Irrespective of circumstances some truths are self – evident. Over-pricing loses that initial interest , freshness and impetus which is vital for securing immediate enquiries / viewings. Even worse some buyers will have reservations about a property that has not sold as quickly as others, or has been reduced in price ( several times).
All this brings us to the crunch.
The best way to prevent over-pricing and sell your home at a really good price to a well qualified buyer is to instruct a good Estate Agent ( I recommend Myrings !!! ). You definitely don’t want an Agent who will over value your house simply to gain the instruction and then gradually reduce the price to a more realistic level over a period of many months. The likelihood is that the ultimate selling price will then be lower than it would have been if a smart marketing plan and price had been in place from the start.
If the above has caused you any alarm then please comfort yourself. The good thing about Harrogate and its surrounding villages is that its vigorous market forces are your safeguard. A realistic but sensibly optimistic asking price brings in the buyers and inviting offers and the seller can then choose the most attractive. Cash buyers preferred to “ mortgage ready “ buyers etc. In the case of an extraordinary level of interest a seller can choose to go down the “ best and final “ route and select the one which suits them best.
If you wish to discuss the above or are interested in the Property market in Harrogate then please come along and see us and enjoy a free no obligation chat about the services we provide.
