Selling - Price range or specific price?

Tizzi

We're almost ready to put our house on the market, but are unsure what's the best way to price it. One estate agent insists that a price range is the best option, and will get the highest price for the house. The other agent we're considering insists that putting a price a smidge above what you're realistically expecting to get is best. Both agents naturally talk a good talk about it all, and so we're not sure what's best. We've negotiated the same fees with both agents, so there's no other real deciding factor other than marketing strategy.

Realistically, based on the prices similar houses are going for in our immediate area, we'd expect to get £185k for ours. We're currently in one of the more sought after areas of town, as it's nice but not as expensive as other areas, so houses that have come on in roads near us have sold within days (not assuming ours will, of course, but it's a promising start at least!).

Based on that, would you go for Agent 1's approach and ask £175-195k, with the expectation of reaching £185k (or above, according to the agent), or would you go for Agent 2's approach, and ask £188k with the expectation of dropping to £185k?

Or would you do neither - and if so, what would you do about asking price?

Thanks!

oldMcDonald

I've never quite got this price range thing. I can see that in a rising market it can be a way of enticing people to bid against each other, but when house buying and selling goes silly, don't they just do that anyway?

In a falling market, with one offer or so coming in at a time, why on earth should someone offer £185k - £195k if there is a guide range starting at £175k? Does that mean the seller may accept £175k, or that they are holding out for more and that figure means nothing?

Maybe I'm just missing the bleeding obvious? I usually do! As a FTB I tend to not give too much attention to houses with 'guide price of...' . I'd rather have a set price of, say, £190k and try to get x% negotiated off. We may still arrive at the same price, but it seems a simpler way of selling to me.

chickmug

oldMcDonald wrote: »

Maybe I'm just missing the bleeding obvious? I usually do! As a FTB I tend to not give too much attention to houses with 'guide price of...' . I'd rather have a set price of, say, £190k and try to get x% negotiated off. We may still arrive at the same price, but it seems a simpler way of selling to me.

I fully agree with you on this.

'Price ranges', 'offers over', 'offers in excess of', 'offers in the region of'

In many cases all total 'clap trap' invented by idiot agents who give the better ones a bad name.

purplebuzz

For me, I like to try and think about it from what I would think as a buyer. I would look at a price range and think right from 175k to 195k, why would I offer over their lowest range as they are obviously prepared to accept that.

A friend of mine recently sold their parent's house with a price range of 220k - 235k and they eventually accepted 206k. So the buyer's obviously think that the lower end of a price range means nothing to them.

Presonally, in the current climate everyone likes to think that they are getting a bargin and will always always try and get it for less than what ever the price of the house is stated at! (Whether that is a range or not!)

We have just put our house on the market, and similarly to you had narrowed it down to 2 agents. One with the price range approach and one with a slightly higher fixed price that what we are willing to accept and personally we have gone with the fixed price agent.

One other thing that agents might use a price range for is that when people search on rightmove the house may appear in a lower bracket that someone may have usually searched within.

oldMcDonald

purplebuzz wrote: »

One other thing that agents might use a price range for is that when people search on rightmove the house may appear in a lower bracket that someone may have usually searched within.

Yes, I can see that it might make sense to market it that way so as to hit a wider audience of buyers, but if you are not going to accept the lowest guide price then it is still a waste of time. You may as well say 'Guide price of £1 - £10,000,000' and then just see what offers come in.

sarah_elton

I don't understand price ranges either. If you advertise at £175k-£195k, I'd expect you to accept £175k. Why in the world would I offer £195k?

I'd always go for a specific price and let people negotiate down. At the moment, everyone wants money off. If you want to achieve £185k, I'd perhaps go slightly higher than £188k, as people will expect to get more than £3k off.

pawpurrs

Price ranges dont work, unless its a very boyant market and then only if there are more than one interested parties, the bottom figure will be ingrained in the mind, far more than the higher figure.

Nenen

As a buyer I loathe price ranges and, as PPs have said, I just look at the lowest figure anyway. My other pet hate, which Haart are renown for, is 'offers over x'. It makes it laughable when PropertyBee shows these 'offers over' gradually dropping on a house over the months it is on the market and I can't help wondering if they would have sold sooner and for more if they had just put a fixed price or even 'offers in the region of' which suggests (to me anyway) that they are expecting a little bit of haggling and would accept something slighty under the guide price.

However, the over-riding factor in choosing an EA for me would be who manages to sell the most properties in the same price bracket in my area. Who has the most sold boards or the most properties under offer on Rightmove? Which has the best presence on your local High Street? Has anyone you know sold with either of them and how did they feel they handled everything? I would certainly ring both EAs as a prospective buyer and see how they handle the call before making a decision reagarding which one to go with.

superfran_uk

I would say don't go for a price range, particularly in your situation as many people will not offer over 175 due to stamp duty.

I would assume as a buyer that the minimum price was the minimum they were willing to take, and I might even offer under, but why on earth would I offer over this??

Philippa36

I agree with superfran_uk!

We would offer £175 due to the stamp duty threshold unless the house was absolutely perfect and everything we were looking for!

Our house is priced at £169k but we would sell at £165k, and would be expecting (hoping for!) offers around there.

I don't think a price range of 20k will make people offer the higher amount.

Tizzi

You've all pretty much confirmed my thoughts about the downsides of a price range, and so we're going to go with a specific figure instead.

Thanks very much!