If you’re currently in the market to sell your house, one of the first questions you’ll be asking is, “Just how much can I sell my house for?” It’s an important thing to consider, as you want to be sure you’ll be able to get the most value for your property, and it also helps to manage expectations. Many home sellers make the mistake of not getting an accurate valuation. This can end in two ways: either they sell for a lower price or, more commonly, they choose an unrealistic price which results in a long drawn-out timeframe with multiple negotiations. Sellers who know what their house is actually worse stand a far better chance when dealing with buyers.
Moreover, the property market is constantly fluctuating, so the value of your property can change each year. So what you may have heard from a neighbour two years ago may no longer be true. There are many factors that contribute to these changes; however, the process of finding out the actual value of your property stays the same.
In this article, we’ll be exploring everything you need to know so you can accurately calculate how much you can sell your house for.
How to price your house
Let’s get straight into the most important part, how do you price your house?
Research local house prices & market conditions
The value of your property ultimately boils down to two factors, the price of other similar properties sold in your area recently and the overall market conditions.
Many assume they should base their property value on an average property price found through a quick Google search, but these averages can vary considerably even within neighbourhoods. Some areas can be seen as more preferable to others, which drives up the price.
Think about it, how many people would pay extra (or less) if there was a school down the road? In the same sense, the type of property also changes the value of your property. Instead, you want to find similar properties based on size, condition and location that were sold recently to help you get a better idea of what your property is worth.
Additionally, the market conditions must also be factored in when you’re deciding the price. Market conditions are also affected by many different factors. The two most important factors to keep in mind here are interest rates alongside supply and demand.
Lower interest rates generally make it more affordable for buyers to borrow money, leading to increased demand and potentially higher prices. On the other hand, higher interest rates may price buyers out, leading to decreased demand and potentially lower prices. Supply and demand as a concept is quite self-explanatory, but if there are more properties for sale, prices go down; however, if there are fewer properties available, then the prices increase.
If it seems like hard work to find and research all of the above, don’t worry; there are other options available.
Ask the best local estate agents for a free, no-obligation valuation of your home
Another way you can calculate the value of your property is to contact a local estate agent who offers detailed valuations. They will have in-depth knowledge of the local area and will visit your property so they can include unique features of your property, recent local sales, and current market trends to your property value.
Get an instant valuation from us
Our instant valuation service provides a convenient way for you to get a quick estimate of your home’s worth. All you need to do is enter some basic details about your property, and you’ll receive an immediate approximation of its value. This value is calculated in the same way as comparing local properties sold recently along with the market conditions.
What happens if your price is too high?
Setting a price too high can be more detrimental than you think. An overpriced property can receive less interest than other competitively priced properties. The longer a property sits on the market, the worse it can get. Many potential buyers may assume there’s something wrong with the property, or they may be unwilling to engage in negotiations, expecting the process to be difficult. You may then find yourself in the position of having to reduce the price to attract interest.
On the other hand, if you price your property competitively, not only will you get more interest, but you may also receive multiple offers, ultimately resulting in a higher final selling price.
Decide how to sell your house
Once you have a property value in place – it’s not over yet. How you decide to sell your house can also affect the selling process, timeline and, in some cases, the selling price too. Let’s take a look at the options you have available.
Do you need to sell your house fast?
Attempting to sell a property fast requires a different approach to the traditional methods available. It may also not be the most suitable method for everybody. However, the most common method of a fast sale is working with cash house buyers to achieve a fast sale.
Advantages
- Speed
- Peace of mind
- Guaranteed funds
The most obvious advantage is speed. Fast sales are ideal for those in a hurry, such as individuals relocating for a new job. Additionally, In an unpredictable market, a quick sale can offer certainty and peace of mind. Instead of worrying about a buyer being able to complete a sale without any hiccups, a cash house buyer will have the money ready to go.
Disadvantages
- Slightly lower price
However, a fast sale often comes at a cost. You might have to accept a lower offer to facilitate a quick sale. Additionally, with a quick sale, you might not have the luxury of negotiating terms or prices as you would when waiting on the open market.
Who Might Need to Sell Their House Fast
There may be a range of reasons as to why individuals need a quick sale. Here are some of the common ones:
- Relocation
- Lifestyle changes
- Facing Bankruptcy
- Divorce related sales
Should you take your time with your sale?
On the other hand, it may seem more beneficial to wait it out on the open market for buyers. Of course, there are both advantages and disadvantages to this approach, too. Let’s take a look.
Advantages
More time on the market can lead to higher offers, especially because you’re not rushed to accept the first bid that comes in. In some cases, you can even use the first bid as a negotiation tactic for future offers, as it may lead to more competitive offers. This is one of the major benefits as you have more time to deal with negotiations. Of course, this is assuming it is a seller’s market and there are plenty of buyers ready to go.
Disadvantages
However, there are risks with waiting longer for your house to sell. This is because the longer your house is on the market, the more exposed it is to market fluctuations. This can result in missing out on a good deal while it is available. Additionally, selling a house isn’t as stress-free as you may expect. In fact, a longer selling process adds to the uncertainty and stress of selling your home. Not to mention the added discomfort of having to go through multiple home viewings and dealing with buyers looking for discounts.
It’s also worth pointing out that if you choose to take your time to sell your house, you can still avoid some of the costly aspects of selling. Selling a house without estate agents is more possible than ever and can allow you to save some money in the process too.
What does your local market look like?
Understanding the local market conditions is key. One of the first things you want to identify is if it is a buyer’s or seller’s market. The answer to this will influence your pricing strategy and how you approach the sale. In a buyer’s market, you will have to be more competitive with your pricing, while in a seller’s market, you will have the upper hand and can afford to price your property more aggressively.
As mentioned earlier, you should start by looking at three factors. The location, similar types of property, and the conditions of those properties. If your property stacks up well amongst all three factors, then you know you’re in a good place to get the most value for your property. On the other hand, if your property doesn’t fare as well as other properties, then you should think about if there is anything you can do to improve its value. Again, if you have more time to sell, then you can afford to carry out some renovations on your property to make it more attractive.
Disclosing potential problems with your house
Typically, during the process of selling a house, the buyer will conduct their own checks to ensure there are no hidden issues. However, it’s always a good idea to be upfront about any that you’re aware of. This transparency can prevent legal complications later on and helps establish trust with potential buyers. Whether it’s a minor repair that’s needed or a more significant issue, disclosing these upfront can save you from headaches down the line.
Typical pricing for a sell house fast firm
If a quick sale appeals to you as opposed to waiting it out on the open market, then a quick house sale company may be a great option. However, there are many different companies out there that operate under this model, so their pricing structures can vary. It is expected that the price valuation given will be just under the market rate for your property.
As these companies operate as a business, they have to provide an offer which protects their interest. As such, it is extremely unlikely that they will offer a price at or above the market value. They do usually make this quite clear. However, if you factor in how much it costs to sell a house along with the added time you have to wait for a buyer, a quick house sale company can still work out to be the best choice. Always be sure to check the reviews and do your due diligence before working with any sell house fast company.
When should I sell?
The time you choose to sell can significantly affect both the price you achieve and how quickly you can sell. This is because factors such as economic conditions, interest rates, and even the time of year can influence buyer activity. For example, the market tends to be more active in spring and less so in winter. The best way to make this decision is to look at the market conditions and compare the market value of your property with your expectations. If the conditions are right, then it’s a good time to sell. If they’re looking unfavourable and you have time to wait, then you can always wait it out until things look more optimistic.
FAQs
How much should legal fees be when selling a house?
Legal fees for selling a house typically range between £850 and £1,600 plus VAT. However, this can vary based on the complexity of the sale, the value of the property and the location.
Can I sell my house below market value to a family member?
Yes, you can sell your property at any price to a family member. However, be aware of the potential tax implications, especially regarding capital gains tax.
Should I sell my house now or wait until 2024 UK?
Unfortunately, the market can vary considerably, so predicting whether it will be better in the future can amount to nothing more than wishful thinking. Instead, you should base your decision to sell on your own personal situation along with how long you’re prepared to wait. You can choose to keep track of the market conditions and take notice when similar properties start selling for a price you’d be comfortable with. At that point, you can choose to sell.
Can I sell my house to my son for £1?
Yes, it is legally possible to sell your house to a family member for a nominal amount like £1. However, there are still tax implications to consider, and the process can be more costly if there is still an outstanding mortgage. But in terms of the law, you can sell your property at any price you like.
