For many Britons, their home is not just their castle – it’s their retirement plan too. But if you want to sell, you’ll need to hit the right price...
If you're trying to sell your home this summer, you'll be only too aware that this is no ordinary market. Even if you lived through the last crash in the early 1990s, this one is one tough cookie.
According to Halifax, average house prices have fallen 22% from their £201,000 peak. But compared to the six years it took house prices to fall just 15% in the early 1990s, this time the steep slide happened over just 21 months.
Sellers finding their feet
So it's no surprise that a nation already obsessed with property will be reluctant to concede their home is worth a lot less than they thought.
According to a survey published by Abbey in May, sellers were pricing their homes an average £37,000 above their actual value. Average homeowners were estimating their home to be worth £190,175, which - compared to Land Registry figures recording actual sale prices at an average £152,000 - was a hefty £37,000 too far north.
But a fast-moving economy has meant that, since then, there have been tentative signs of improvement in the housing market. Back in May, both Nationwide and Halifax reported house price rises of 1.2% and 2.6% respectively which could signal that the slump has finally hit the bottom.
Expectations gap is closing
As a result, the majority of surveyors are now reporting that the gap between the asking and selling price is narrowing. According to the Royal Institution of Chartered Surveyors, houses are now selling at an average of 11% below their asking price. This compares to a 16% disparity in August last year.
The Rightmove house price index for June also revealed that asking prices fell back by 0.4% (£1,005) as new sellers finally got to grips with a lower-priced landscape, following four months of rises.
So sellers seem to be pricing their property more realistically, while buyers are sticking around and negotiating more - rather than walking away after their first low offer.
Of course, how successful you are at selling your home at a price that is agreeable to both you and your buyer will also depend on supply and demand in the area. The gap between the asking and selling price is narrowing most in areas of short supply or popular areas - such as next to a good school.
On the flipside, buyers are achieving bigger discounts in places where there are a high number of repossessions.
Pitching the right price
So keeping all this in mind, how can you pitch the right price to sell your property?
The first thing you should do is carry out your own research. By using property search engines such as rightmove.co.uk, findaproperty.com and particularly propertysnake.co.uk, you can obtain details of houses in your area which haven't sold due to unrealistic pricing.
You can also check how much similar properties in your area have sold for using nethouseprices.com (it uses Land Registry data, but unlike the Land Registry, allows you to access it for free), and obtain a free online valuation from Zoopla.
Once you have a valuation price in mind, make appointments with at least three estate agents for their own take on how much your home is worth. Don't just plump for the estate agent that gives you the highest valuation, however. Instead, choose the one who has the most experience and has sold the most homes - the one who you think will do the best job of selling your property. And find out exactly how he/she plans to market your home.
While your established For Sale price will need to be aligned with a post-recession property market, you will also need to price it high enough for a seller to try and negotiate you down - which is still very likely in the current market.
Finally, don't forget to set your home apart from the competition by means of excellent presentation inside and out. Get rid of any unnecessary clutter and keep your property looking spacious. It might even be worth giving your property a bit of a repaint. Read This is the way to sell your home for more tips.
Good luck!