Getting the price right
Thinking of putting your house on the market? Getting the asking price right is essential to attracting a buyer. Here are some things to consider.
Market update
It was a slow summer for the housing market, as affordability pressures took their toll on buyer confidence. The number of sales agreed fell annually by 9% in July, according to Zoopla. This is likely due to raised mortgage rates, which have added about £125 to monthly repayments for the typical buyer. Although the short-term outlook is uncertain, there is hope for sellers, as homes that are priced appropriately still have a chance of getting a buyer.
A buyer’s market
Buyers currently have a lot of choice; the number of available homes increased in eight out of 11 regions when compared with last year. This has given buyers greater negotiating power, so sellers need to price competitively.
Common pitfalls
In current market conditions, it is risky to be overly ambitious with your pricing. You should therefore do your market research and decide a price based on recent sold prices, rather than focusing on advertised asking prices.
It may be tempting to go for a high asking price knowing that you can adjust it later. But this approach will likely take you longer to sell. In July, 30% of homes that had been on the market since quarter two were still unsold, without any price reduction. But research from Savills shows that a seller who gets the price right from the outset can achieve an agreed sale within 28 days. However, if there is one price cut, it could take over three months to receive an offer. This time could extend to nearly five and a half months if there are two price adjustments.
Know your area
While it’s useful to know what is going on in national markets, it’s essential to understand the conditions in your area. 76% of local markets recorded a fall in agreed sales between May and July; however, about a quarter of areas saw stable or increasing activity during that time. For example, Warrington, Hull and Dundee have experienced strong house price growth and a rise in sales. Meanwhile, Bath, Oxford and Harrow have recorded a slowdown in sales and weakening price growth. You should therefore speak to a few local estate agents to get their advice on a reasonable price for your property type in your own area.
Seek advice
If you’re looking to move home this autumn, get in touch with us. We can help you ascertain what you can reasonably afford, so you can enter your property search in the best possible position.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources:
https://www.zoopla.co.uk/discover/property-news/is-now-a-good-time-to-sell-your-house-heres-what-really-matters-in-2026/
https://www.zoopla.co.uk/discover/property-news/house-price-index/
https://www.ft.com/content/24a8adf9-8103-44b3-92e8-350ef897dc2a?syn-25a6b1a6=1
What to take from this update
- Use recent sold prices and local estate agents’ advice to inform your asking price.
- An ambitious initial price followed by reductions can prolong the selling process.
- Understand your budget for your next home alongside your plans to sell.
“Before you commit to your next move, it helps to understand how the likely sale proceeds, your existing mortgage and your next mortgage could fit together. Local estate agents can advise on your asking price, while I can help you work through the borrowing side and what the monthly payments could mean for your budget.”
Is this relevant to your plans?
News is useful context, but it cannot account for your income, deposit, credit history, property or existing mortgage. If this update has raised a question, send Holly a quick message and explain what you are hoping to do.
Ask Holly on WhatsAppInformation correct at the date of publication and provided as a general guide only. Mortgage products, criteria and market conditions can change. This article does not constitute personal advice.