Tag Archives: property prices

A hallway with tables, a red rug, and French windows

A hallway with tables, a red rug, and French windows

There are many resources estate agents and valuers can draw upon to ascertain the value of a home, but they all rely, in one form or another, on precedent: what other properties have sold for in the road, village or area. But how much can past performance really be an indicator of what a future buyer is prepared to pay for their dream home?

A property that has similar neighbouring properties, perhaps in a terrace, row of semi-detached houses, or a small development of detached homes, usually has ample precedential evidence; sales over recent years will paint a picture of rises and falls in the local market; ‘done-up’ properties setting the glass ceiling for achievable sale prices, houses in need of renovation bringing up the rear. They all make up the rich tapestry that determines your asking price.

When valuing a unique property however, the tapestry starts to unravel. You can look for precedent: perhaps at the last sale price for the property, though if that was more than five years ago, and the house has been the subject of an improvement programme, what can this really tell us? It might help to look at the price per square foot, which can indicate a benchmark pricing for comparable properties, though it’s a pretty complicated process to add or subtract swimming pools, acreage, a Clive Christian kitchen or an Amdega conservatory. Ultimately, the only real way to ‘value’ a unique home is to look at four saleability factors:

  • Affordability – what kind of buyer does your home most appeal to, and can they afford it? A London buyer may be able to afford more than a local, but if your home is dated, or unsuitable for a contemporary buyer, an urban buyer may dismiss it in favour of something with move-in appeal.
  • Scarcity – how unique is the house? Is it unique because it’s been extended so much over the years, the original house is unrecognisable, or is it a sixteenth century house that Elizabeth I once stayed in?
  • Appeal – if you were a buyer, would you want your home? Does it tick lots of boxes? Does it have all that a family buyer has been dreaming of? A pony paddock and a swimming pool may not be on their list, but may just clinch the deal for you, making sure they are thinking with their hearts, and not with their heads.
  • Competition – what else could they buy for the same money? How does it compare with yours? Be honest – which one would you choose?

If you’re trying to sell a unique home, and would like some honest, independent advice on its saleability, why not drop me a line? You may just be ready for some HomeTruths.

If you’d like my help to sell your home more effectively, please answer a few short questions here and if I think I can help you, I’ll be in touch.

A tea cup and kettle, an opened book, glass candle and a mini fruit stand with raspberries on top of a wooden table in a living room.

So many things are marketed as 99p or similar with an attempt to make it look ‘cheap’, when it really isn’t much of a saving. So how does this affect the many common things that ‘use’ the penny as a pricing tool?

When it comes to using the 1p pricing tool in property pricing, it tends to not have a very positive effect. Property pricing is of paramount important these days.  I don’t mean the question of ‘value’ – but instead the art of setting the right price so that the portal searches are optimised.  For example: you have a house to sell worth approximately £1 million. The agent suggests an asking price of £999,999.  ”It’s a psychological price point” they tell you.  I don’t agree.  At all.  I say – market at £1,000,000, and here’s why:

  • £999,999 is a cheap ploy – an ‘Asda’ price.  Your buyers aren’t daft, so don’t treat them as if they are!  Give them some respect and a ‘Harrods’ price.  Make it £1 million straight;
  • £1 million is actually an aspirational price point – your buyers WANT to spend one million pounds on a house, and tell their friends and family that they have done;
  • £1 million is a very confident price – it says “my house is worth a million pounds”  £999,999 is apologetic, humble: it says “make me an offer”;
  • £1 million gets your property shown in more searches.  At £999,999 on Rightmove, your property will only appear in searches up to £1 million.  At £1,000,000 straight, it appears not only in searches up to £1 million, but also those over: potentially doubling traffic to your property advert.

After all, as my Dad would have said, “Look after the pennies, and the pounds will take care of themselves”.

Should we scrap the penny? Do you agree that it would have a positive effect for property pricing? Tell us below.

If you’d like my help to sell your home more effectively, please answer a few short questions here and if I think I can help you, I’ll be in touch.