How do you determine the right price?

copperjar

In the process of selling and buying and really struggling with prices. There is almost too much info out there - what houses were bought for v what they are now marketed at, estimated valuations from various websites, EA valuations, average market increase and of course family and friends!

I put my house on the market and was very much led by the EAs. Now (probably the same as anyone who accepted a quick offer!) I'm thinking it was possibly priced a bit low, especially when I look at what it costs to "upgrade" to a bigger house in the same location. £100k more for an extra bedroom and outdoor space on a worse street. Mine was valued in March, went on the market in August and I'm wondering if the price should have changed to reflect that?

I think I can spot a good price but when something seems to be way higher than I expect, I doubt myself. How do you work out what something is worth? I know "offer what it is worth to you" but nobody wants to offer way over market value, especially for a not-forever house.

Any tips and tricks? Or is it really just about what you feel something is worth?

hazyjo

Would you rather it had sat on the market for several months?


If it was that underpriced, you'd have loads of viewers and it would probably go for over the asking price.


This is the trouble when someone likes it and offers the asking price or as good as - the vendor thinks they marketed too low.


My friend thought he'd underpriced when he got an offer straight away. He dropped out as he couldn't find anywhere to go. When he did find somewhere, he remarketed straight away thinking he'd get a buyer immediately, but it sat on the market for ages before he gave up.


I'm unsure of the exact value of mine too, but would know what was a low offer and whether I'd done okay.


Surely you had some idea of what houses were selling for where you were looking... you must have known what you'd like from your house to afford what you wanted. Whether someone would be willing to pay it is another matter.


I presume you got the asking price - if not, why agree to sell?


Good luck.


Jx

Chanes

I know this is obvious, but the property prices tend to go up so if you are buying it as a home and you love it and intend to stay for a few years then it is not likely you lose on it?

The reason you sold is because it was correctly priced and someone liked it enough to pay it. EA's want to make some money in a short a time as possible so they price to sell and you have!

There's a truth in that you will know the house is right for you from a gut instinct and then cross your fingers about the survey(s). Good luck!

phoebe1989seb

Chanes wrote: »

I know this is obvious, but the property prices tend to go up so if you are buying it as a home and you love it and intend to stay for a few years then it is not likely you lose on it?

The reason you sold is because it was correctly priced and someone liked it enough to pay it. EA's want to make some money in a short a time as possible so they price to sell and you have!

There's a truth in that you will know the house is right for you from a gut instinct and then cross your fingers about the survey(s). Good luck!

That's a very black and white view of things though

We previously bought a house when prices were at their peak and sold for considerably less 3.5 years later after prices had crashed.

Today I've been researching what's happening to house prices in this - different - area within the past year ahead of selling our current house. On RM I came across several properties within half a mile of our postcode that had sold for between £30k and £50k less in the last twelve months than when they previously sold - generally between 2006 and 2013. These were all types of property across all price bands.

Guess it depends on what the market is like/likely to do in the OP's chosen location.

copperjar

Thanks Hazyjo. Agree and we were pleased with the price, I'm more surprised at how much the jump is to the next level - which has made me reflect on what I accepted/marketed at. Mind you, the story of your friend has hit home somewhat because I've been saying those exact same things!

copperjar

Chanes wrote: »

There's a truth in that you will know the house is right for you from a gut instinct and then cross your fingers about the survey(s). Good luck!

I think maybe that's our problem at the moment - haven't had that feeling yet! So looking at things through a very unemotional eye!

Chanes

phoebe1989seb wrote: »

That's a very black and white view of things though

We previously bought a house when prices were at their peak and sold for considerably less 3.5 years later after prices had crashed.

Today I've been researching what's happening to house prices in this - different - area within the past year ahead of selling our current house. On RM I came across several properties within half a mile of our postcode that had sold for between £30k and £50k less in the last twelve months than when they previously sold - generally between 2006 and 2013. These were all types of property across all price bands.

Guess it depends on what the market is like/likely to do in the OP's chosen location.

I'd say not enough years passed by? I know there was a big jump in prices 2004-2008(ish) and a slow down thereafter. But you have a very fair point in that sometimes to make a return you have to wait longer than you may like.

kingstreet

We bought for £210k in July 2004.

Two doors down is on the market for £229k today.

So best we can hope for is £19k profit in twelve years...

Not bothered. We got the house we wanted/needed and have had the utility from it for twelve years.

breaking_free

hazyjo wrote: »

This is the trouble when someone likes it and offers the asking price or as good as - the vendor thinks they marketed too low.

My friend thought he'd underpriced when he got an offer straight away. He dropped out as he couldn't find anywhere to go. When he did find somewhere, he remarketed straight away thinking he'd get a buyer immediately, but it sat on the market for ages before he gave up.

Totally agree with this as I had this situation in reverse. I'd researched the market and made an asking price offer for the worst flat in a nice area. It was the cheapest one of several identical flats as it was a doer upper. The vendor must have been emboldened by my asking price bid as she came back two days later asking for £10,000 more than her original price. I turned her down flat. A day later she accepted my offer.

copperjar

I'm struggling with the price the other way really - what to offer on a house we like. Researched to death the area and house price rises etc and I think it's over priced. It's on at £215k, we offered £200k. I'm reluctant to go much higher, my partner would be happy to offer up to £210k but I really don't think it's worth that. Sometimes research is a killer! Mind you, my OH tends to take the asking price at face value and if we can get anything knocked off thinks it's a good deal. Whereas I'm sure many houses are priced way too high initially (they tend to drop in price after a few weeks on the market)

So tough. We just accepted the EAs word when they valued ours and wanted near enough the asking price. Seems other people market houses expecting to have to negotiate 5-10% less.

Crashy_Time

copperjar wrote: »

In the process of selling and buying and really struggling with prices. There is almost too much info out there - what houses were bought for v what they are now marketed at, estimated valuations from various websites, EA valuations, average market increase and of course family and friends!

I put my house on the market and was very much led by the EAs. Now (probably the same as anyone who accepted a quick offer!) I'm thinking it was possibly priced a bit low, especially when I look at what it costs to "upgrade" to a bigger house in the same location. £100k more for an extra bedroom and outdoor space on a worse street. Mine was valued in March, went on the market in August and I'm wondering if the price should have changed to reflect that?

I think I can spot a good price but when something seems to be way higher than I expect, I doubt myself. How do you work out what something is worth? I know "offer what it is worth to you" but nobody wants to offer way over market value, especially for a not-forever house.

Any tips and tricks? Or is it really just about what you feel something is worth?

It is worth what someone will pay you for it, if you have a house advertised and getting no interest it is priced too high.