Page 29 - ESPC_May24

EXPERT ADVICE

The asking price is there to lure buyers in,

and this should be considered very carefully,
to ensure maximum appeal in a highly
competitive market.

Paul Hilton, ESPC CEO

I’m in no way saying that you should market amount of time a property is on the market
your home for less than its value – but it’s versus the percentage of its valuation
essential to be realistic about what you should achieved. There’s also data that indicates that
expect. The asking price is there to lure the percentage of the valuation achieved in
buyers in, and this should be considered very properties that are marketed at an appropriate
carefully, to ensure maximum appeal in a highly price is higher, versus a property that’s perhaps
competitive market. been overegged and then must reduce its price,
or buyers feel no need to bid competitively and However, ‘offers over’ properties must work market for longer run the risk of lowball bids,
As a seller, you have one chance to make a first make lower offers. harder to be more appealing than fixed price or the sellers feeling pressured to officially
impression, and it’s imperative to get it right. homes, as buyers are aware of the risks of reduce the price, although this is uncommon
In 2023, we saw a huge increase in the number a bidding war. It’s far better to impress than with properties sold by ESPC solicitor estate
ESPC sales data shows, unsurprisingly, that of properties at a fixed price, assumed to be underwhelm, and pricing competitively can agents. Stagnant properties also impact onward
there’s a strong correlation between the a way of maximising appeal and securing a certainly assist with that. purchases, with your own bids less appealing if
quicker sale, rather than looking for crazy bids. you haven’t yet found a buyer.
While this has calmed down in 2024 so far, We can see that properties marketed at ‘offers
with the ‘offers over’ method applied to most over’ have a lower asking price compared to the Clearly, the best practice for selling your home
properties for sale on espc.com, we can see valuation (averaging 96%) compared to fixed (and achieving the best price) is to be modest
how marketing your home at a sensible ‘offers price homes, which then drives a sale price of with your asking price. It’s tempting to try to
over’ price helps sellers to achieve a higher net around 108% of the property’s valuation. This secure the highest possible price for your hard-
sale price overall. suggests that pricing the properties lower than earned property, but it’s important to resist
the Home Report valuation drives increased the urge to go big – if you price cleverly at the
Our data shows that when properties are value overall, compared to the fixed price first opportunity, you might just end up with a
marketed at a fixed price, the asking price system, where properties tend to break even at higher sales figure.
is around 99% of the Home Report best. 76% of properties sold in 2023 achieved
valuation, with sellers understandably above their Home Report valuation at sale. As ever, the best advice I can offer is to speak
reluctant to market their home for less to an ESPC solicitor estate agent; unlike
than it’s worth. Generally, fixed price Asking price also affects the time the property independent estate agents, they are not only
properties sell for around 98% of is on the market. Unsurprisingly, properties that receiving offers daily, but they are also offering
their valuation. 54.3% of fixed prices sold fastest achieved the highest percentages on other properties marketed by ESPC firms,
homes last year achieved a figure less of Home Report valuation, with buyers keen to so they know where the market is at, and what
than their valuations, while just 11.5% snap up a perceived bargain and thus submit selling prices look like, helping you to make the
achieved a higher sales price. more competitive bids. Homes that sit on the most informed choices.

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