Agents often use the price they tell you your home is worth as their key selling tool. I genuinely heard the term “Get it on then get it down” as an estate agency tactic very recently. This basically means to tell the potential client a very high price, tie them in to as long a contract as possible and then work on said client to get the price down to a level they can sell it at. Classy. And agents wonder why they’re not loved? This process costs the seller a huge amount of £ on final selling price.
Price you choose does two direct things.
1. It communicates to the market the price you want.
2. Dictates where your property appears in online searches.
90% of estate agents won’t think about your price in terms of these two things and will use it as a selling tool in too many variations to list. Now as a seller you can ask “What will that communicate to the market and where will it appear in online searches?”.
These two things will impact your sale in several ways. A quick example of how this works in practice.
If you list a property at £255k (or any price just above a key price point) you’re actually communicating to the market you want £250k. If your idea is anything other than to achieve £250k, do not price your property at £255k. You only get answers to the questions you ask and the question here is “will you pay me £250k?”
Even if that is your plan, there are better ways to communicate to the market you want £250k.
Eg. Offers in excess of £250k. This communicates that you want at least £250k but really more than that. An infinitely better negotiating stand point from the start.
When pricing your property you want to create the circumstances that give you the maximum chance to sell for the highest price. At Offers in excess of £250k the number of buyers seeing your home is far higher in searches, the price is more attractive (even though you’re actually asking for more money) and if you have an agent that is even remotely competent at negotiating you’ll almost certainly get a better price, better circumstances, a better buyer and a better sale.
The only reason you’d go on at £255k would be if you have absolutely zero faith in the estate agent. And to be honest, if that’s the case, find another estate agent.
So when you’re meeting an estate agent it’s worth considering whether they’re using the price as a sales tool against you, or having an educated conversation about your price with you.