When people are buying a home for themselves to live in, unless outrageously sensible, they will always buy the best house they possibly can. Who isn’t looking for their dream home?
So when looking to sell your property, be wary of getting caught up in the wrong price bracket.
Example 1: 4-bed property valued in region of £440k – £450k. Agent recommends that it goes on at £465k to take an offer. Sounds like a sensible idea, right?
Well looking at how people search in this area (at £465k) your home is going to be in direct competition with £500k marketed properties. The majority of buyers that will see your home in searches will have a higher budget (typical search is £450k – £500k), so expectations will be that much higher. With that high expectation, your property will receive less interest. Fewer people will click to see the details as they will want to buy the best house they possibly can.
Example 2: Same 4-bed property same value. Agent recommends it goes on at £450k bang on the money. Now it will start appearing in the £400k – £450k typical buyer search (in this area). So now you’re smack bang in the dream home spot for your target market. Interest will be far higher and I’d also bet that you’d get a higher agreed price too.
It’s funny how this works, but I see it a lot. It’s easier to get buyers up from their ideal budget than it is to get them down from their ideal house.
Simple, but effective.