Setting the Asking Price

The best way of ensuring a sale is to ask a realistic price - a property doesn't have a fixed market value and is worth exactly what a buyer is willing to pay for it.

However, over-pricing your home may mean that viewers may be few and far between and your house may sit unsold for a long period of time. However, it's also important not to undervalue your home, as pricing it too low will not only lose you money, but may, in fact, deter buyers who may wonder what's wrong with it. If you're in no hurry to sell, you could price it at a higher valuation and lower it later if you get little or no interest.

Valuing Your House

If your house is fairly standard for the area, find out its market value by comparing the prices of other similar homes on the market or those which have recently been sold.

Remember that there are a number of things that can increase the value of your home compared to similar homes in your area, such as a conservatory, an upgraded kitchen or bathroom, the addition of an en-suite bathroom, garaging or landscaped gardening. Gaining planning permission for extensions or other major works can also add value to your property. You can find out more about this elsewhere in this section in Adding Value to Your Property.

Agency Valuations

Most agents will provide a free valuation in the hope that you will sell your house through them. This may lead them to inflate the price to encourage you and get your business - however, after locking you into a sole agency contract they may then suggest you lower the price after a few weeks.

Valuations by different agents may vary by as much as 10 or 20%, and so you should try to obtain at least three valuations and pitch the asking price around the middle range rather than at the highest one. You should be prepared to drop the price slightly (5-10%). You should also think about setting it just above or below a Stamp Duty Land Tax threshold, if applicable.

Other Considerations

You may want to think about including some furnishings and appliances in the sale - you could add an appropriate amount to the price to cover the value of any extras you include or alternatively you could use them as an inducement to prospective buyers.

If house prices are rising and property is in demand, you should test the market first before accepting an offer. If you have an unusual property that's in high demand, such as an exceptional period property or a converted mill or barn, it may pay off for you to invite sealed bids or to sell it at auction.

... that the average house price in the UK is now in the region of £200,000?