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How Did/would You Set The Asking Price For Your House?

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OK so I'm about to market my house (divorce!)

Not in a desperate hurry to sell as can easily afford the mortgage on my own, though would be nice to catch this bounce as I am bearish for the winter and 2010-11.

How did/would you guys go about setting an asking price for your house?

Possible strategies come to mind such as

- EA valuation (VI alert though!)

- Current asking prices of similar houses

- Take approx peak price and adjust somehow

- Start with a big number and just drop regularly

Those four produce quite diverging answers!

Any thoughts/advice/other ideas?

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Completed on my house 6 wks ago.

Had to knock 30% off to get rid of it from the original joke EA estimate price.

2 EAs later and a proper price saw it sold.

I just slashed the price below the amount my 2nd EA's advice price to sell. It sold in the 1st viewing. Houses on the same street are now selling @£15k lower so I'm pleased I made that decision.

My 1st EA refused to lower the price to the level I wanted to drop as it would 'de-value the street, and other houses they were marketing'. I sacked them straight away.

Good luck with it. I was lucky in that I had equity (just) and simply wanted rid the house.

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My 1st EA refused to lower the price to the level I wanted to drop as it would 'de-value the street, and other houses they were marketing'. I sacked them straight away.

:blink:

Did the fuknuts actually know what the word "agent" means?

Well done by the way...

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:blink:

Did the fuknuts actually know what the word "agent" means?

Well done by the way...

My wife was the one to tell them.

Poetry in motion - and in person. They tried to barter with the reduction we wanted and claimed we were media victims and were throwing away thousands.

The EA then said he couldn't market our house at the level we suggested as he would lose other custom from our neighbours.

I terminated the contract there and then. We went next door and the house under offer within 48hrs @ a large drop, but a realistic one.

Moved now - thank god.

Edited by pie-eater

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OK so I'm about to market my house (divorce!)

Not in a desperate hurry to sell as can easily afford the mortgage on my own, though would be nice to catch this bounce as I am bearish for the winter and 2010-11.

How did/would you guys go about setting an asking price for your house?

Possible strategies come to mind such as

- EA valuation (VI alert though!)

- Current asking prices of similar houses

- Take approx peak price and adjust somehow

- Start with a big number and just drop regularly

Those four produce quite diverging answers!

Any thoughts/advice/other ideas?

Take EA's advice. Much depends on what you have to sell of course, a unique property or a property the same as all the others on an estate! If the later, you go the cheapest and wipe your mouth and walk away. What ever you do, don't chase the market down! The EA should give you his honest opinion if he thinks your the type to accept it.

IMO we will see further drops of another 20%, but that's just my opinion. I also think you need to crack on with this as the spring bounce has somewhat faded away now. I have to say in the last few days news there has been some significant blows to any recovery.

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go with whichever of the EAs [who has a decent shop & you think will do a decent job] that offers you the lowest commission.

listen to what they recommend on price but don't feel you have to agree if it sounds obviously stupid.

if you think you can reliably identify the 'peak' price i personally would start with that as my asking price, try it for a month or so & see if any offers at a price that's acceptable to you.

if that doesn't work then i'd probably start to implement some fairly big price cuts that you think might catch the eye, you know, sort of 5% per time or similar, spacing them maybe a month or two apart. a painfully slow process no doubt but there are so few buyers around right now (given that we basically have pre-bubble standards being applied by lenders but peak bubble [pricing] standards being applied by would-be vendors), a combination that equates to zero affordability and i don't suppose you're so charitable that you want to sell obviously below the curve.

Edited by the flying pig

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A house is worth what someone is prepared to pay. I would think of a figure then double it. The in 6 months time say this house has been reduced by 50% (Legally allowed to do this).

If a numpty buys your house at the inflated price, your quids in.

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If you really want to sell it, then first establish what you think is a good target price - do your own research (look at RM for similar properties on the market, and zoopla for past prices) - but I'd take what I thought it would go for at peak (again - check zoopla) and take off 20%-25%.

Than I'd ask two or three agents who know your area and see what they say unprompted. Then suggest your target price and see how they react. If they disagree, ask them why.

Your local area many have special qualities, but what I seem to read here, and hear elsewhere, is that people with a good property and 20% below peak can get something close to the asking price in a short while. People with a good property and 5% below peak are going to sit there taking a year to work out that they should have taken 10% off, and another year to realise it should have been 15% minimum.

A couple of strategies that I would NOT adopt, having read around and - again - talked to EAs etc:

1) Double the price and then offer 50% discount, or any such tactic

2) Put it on at a high figure and reckon to lower it if the house doesn't sell after a couple of months.

The potential buyers out there are mostly going to look at the asking price, and work out if you and they are in the same game. Very few people are prepared to take a look at an asking price of £400K and think - "Bet we could get that for £275 if we really tried." Nope, mostly people assume that anyone asking £400K is looking for something above £360 - and if £350 is their cut off point they won't consider your house. People here, and some natural bargainers will try to get 15%-20% off the asking price, but most won't even think about that.

Other point is that buyers who have already written your house off once will probably not re-consider if you cut the price. People like those who hang out here might well sit and watch a promising property for months in the hope of substantial price cuts - but we're a minority. For many house hunting is dominated by emotional reactions, and once they've said, "No, not that one," a price reduction - even a generous one - will not make them re-consider that "No." (I've seen that working at very close quarters recently!)

So, price realistically at the very beginning - if you're not getting the viewings then you can sit around forever. No serious interest? Cut the price hard and early. Alternatively consider moving to a new agent - the house will then be marketed as a new property, and some people will look again without realising immediately that this house is not, in fact, new.

Let us all here know how it goes - insight into seller psychology and EA behaviour always welcome.

db

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My wife was the one to tell them.

SNIP

They tried to barter with the reduction we wanted and claimed we were media victims and were throwing away thousands.

SNIP

What, did they offer you a chicken or something? ;)

Edited by aussieboy

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i'm searching for property now, do not use local asking prices without at least checking how long they've been on for

there are properties which have been on the market for a year and don't take viewings anymore. they are simply not interested in selling at a reasonable price

yet new vendors compare the price to those! i do worry about that point that agents dont want to upset their existing customers. in which case i'd go to a small independent or one that doesn't normally use your area

one house where we were looking started 800k+ then got cut to 730k and was on for ages

then it got repoed, listed with a new vendor who doesnt normally service the area

he put it on for 520k, it went for sealed bids and settled over 550k

that's how to market property - it sold in a week!

when i asked estate agents how they measure what's going on to prices they said they look at rightmove - ie other agents' asking prices. so they're all pretending prices are still at 2007 levels which is really annoying

and it's true if something is priced too high i often dont look as i assume they're not a serious seller. though as a housepricecrash freak i have offered 40% off prices in the past based on what i think is fair value and got close to an agreement

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I completed on my old flat last month.

My asking price was 10% below peak and I then droped £5K with the second viewer.

I originally paid £30K and sold for £165K

I also marketed via Housenetwork.co.uk and paid 0% commision.

All in all I feel smug :rolleyes:

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Completed on my house 6 wks ago.

Had to knock 30% off to get rid of it from the original joke EA estimate price.

2 EAs later and a proper price saw it sold.

I just slashed the price below the amount my 2nd EA's advice price to sell. It sold in the 1st viewing. Houses on the same street are now selling @£15k lower so I'm pleased I made that decision.

My 1st EA refused to lower the price to the level I wanted to drop as it would 'de-value the street, and other houses they were marketing'. I sacked them straight away.

Good luck with it. I was lucky in that I had equity (just) and simply wanted rid the house.

Exactly what I did and got a sale in a few weeks - 35% off peak but it was a flat in an area where new build flats are now in the majority - but as I bought in 1999, still walked away with 100% profit .... current sales are now 45-50% behind peak ... so I am quite pleased with myself ..

Ignore estate agents - they have no idea ....

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My mate's split up from his partner and his house has been on the market for nearly 2 years. Made 3 reductions in price (clearly not enough) and it's still not sold.

However he may not be able to cut much further because of outstanding debts or other reasons.

Clearly getting the right price is difficult and you might upset the neighbours who think there houses are worth much more than what people will actually pay.

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My mate's split up from his partner and his house has been on the market for nearly 2 years. Made 3 reductions in price (clearly not enough) and it's still not sold.

However he may not be able to cut much further because of outstanding debts or other reasons.

Clearly getting the right price is difficult and you might upset the neighbours who think there houses are worth much more than what people will actually pay.

My wife put hers on the market at Easter.The EA advised asking £225k and be prepared for offers of £200+. I said that she might be better going at £245k as she wasn't desperate to sell.She took my advice and the EA grizzled a bit.After three days she had an offer of £235k I told her to offer a "split the difference".The buyer agreed £240 and completed three weeks ago. It's a nice house,semi + extension but unremarkable.

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OK so I'm about to market my house (divorce!)

Not in a desperate hurry to sell as can easily afford the mortgage on my own, though would be nice to catch this bounce as I am bearish for the winter and 2010-11.

How did/would you guys go about setting an asking price for your house?

Possible strategies come to mind such as

- EA valuation (VI alert though!)

- Current asking prices of similar houses

- Take approx peak price and adjust somehow

- Start with a big number and just drop regularly

Those four produce quite diverging answers!

Any thoughts/advice/other ideas?

I used last actual like-for-like sale + £50k (or 10%). However, this was Jan 08. Now I would use last actual like-for-like sale minus 5-10% (depending on HaliWide equivalent).

Monty

FYI In the end I achieved 2% below the actual like-for-like.

Edited by uncle_monty

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- Start with a big number and just drop regularly

Wrong way round. Start with a very low figure and increase it when you get offers in a reasonable time span.

When the timespan becomes too long - thats your price.

;)

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Guest KingCharles1st

"- Start with a big number and just drop regularly"

NO!!!

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Guest theboltonfury
I completed on my old flat last month.

My asking price was 10% below peak and I then droped £5K with the second viewer.

I originally paid £30K and sold for £165K

I also marketed via Housenetwork.co.uk and paid 0% commision.

All in all I feel smug :rolleyes:

Congrats. It is all relative though.

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Thank you for all your thoughts.

Current asking prices for similar houses are around 10% lower than peak - I'm minded to set my asking price at that level too, knowing that this leaves room for someone to offer the inevitable X% less.

However, I will see what my EA says as well.

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Be careful, many potential buyers do become very wary when a price in a street is significantly below others.

Its like going to buy car, you view at three dealership along the same stretch and one out of the three is selling an identical car 15% cheaper, many people will then go for the middle price as a safe bet.

It is different with houses as each as its own appeal, but often if looking through a local property rag cheaper property is often overlooked if far cheaper than others.

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If people are looking, you know you are not too expensive

For the first month. After that if you haven't received any offers then you know you are too expensive - and you've already lost the advantage of "new to market".

db

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