Are you planning to get your property valued? We've teamed up with the experts at The House Sales Advisory to make sure you are getting a true price for your property
They get a bad press as being unscrupulous, money-driven businessmen with bad small talk and dodgy suits. In reality, estate agents come in all guises, but the good news for you as seller is that they are generally on your side, as a good sale for you is a good business for them.
However, when you're valuing your property, you need to remember that each estate agent is vying for your business, so you need to make sure that you're clever about asking the right questions and making the right decisions that will benefit you.
Before you arrange valuation appointments
There are two things sellers should bear in mind:
1. It's all in the presentation
A good estate agent will see beyond cosmetic touches, but just like a buyer, an agent will be influenced by the appearance of your property. They will be able to truthfully give you a higher valuation and a more realistic opinion of how your house compares to the competition if it's ready for sale.
2. Demand the evidence
Make sure that you insist on seeing comparable evidence for the estate agent's valuation. Two ways that they can provide this for you are:
- At least three sets of details for property like yours that they've sold recently.
- At least three sets of details for property like yours that they're in the process of selling.
The estate agent will be used to supplying this information, so remember that the only valuations to take seriously are the ones that are backed up with evidence and fact.
If your type of property is well represented in your area and an agent turns up with less comparable evidence than this, take their valuation with a large pinch of salt.
What you must never tell an estate agent
The estate agent will be keen to get as much information out of you as possible, but you're completely within your rights to not give it all up. The following questions are best to avoid:
'How quickly do you need to move?'
This question has nothing to do with how much your property is worth so at this stage, they don't need to know. Giving away this kind of personal information gives agents an excuse not to commit to the maximum price you could sell for. How quickly you need to move is a discussion to be had after you've chosen the agent you wish to employ.
The best way to answer this question is to just tell them you're looking to move when you get a fair price.
'What do you think is a fair price for your property?'
Under no circumstances should you ever let any agent know what you (or another agent) think your property is worth. With this knowledge the agent is likely to either overprice your property in an attempt to flatter you and win your business, or to at least agree with your idea of how much your property is worth.
Either way, all you'll end up with are agents telling you what they think you want to hear.
Your best response to this question is to say that you are not sure of your property is worth, which is why you have invited a professional's opinion. This will ensure estate agents put their best foot forward and provide you with an honest and unbiased opinion of what your property is worth.
Settling on a figure
When the agent gives you their valuation some like to leave themselves some 'wiggle-room'. This means they can often be vague when giving you their final valuation figure. Typically, they'll say things like: 'Well, I think it is worth between £230,000 and £245,000'. Frankly, that's not good enough!
- Make sure the agent gives you a precise figure for the 'asking price' (the price you will advertise at).
- Make sure they commit to the actual figure they expect your property to finally sell for.
- Make sure they tell you how long they expect it will take to sell at this price.
- Finally, it's important to ask them to explain how they've arrived at these figures and time frames.
At this point, the agent should start walking you through the comparable evidence they've brought with them. They should explain the pros and cons of each property, how long they took to sell and how they compare to yours. They should also tell you about property like yours that they're selling at the moment, and how long they have been on the market.
Study these property details (the comparable evidence) and make sure the properties really are like yours. If they're not, ask why not.
Trust your instincts
How the agent addresses the areas we've discussed is just as important as what answers they give. Have they responded quickly, confidently and graciously, or do they sound patronising? Have they taken the time to justify their valuation thoroughly and logically? Do you feel they're the sort of agent that will go the extra mile for you? What is your gut feeling?
The right price
The acid test for any property is the market. The market will tell you if you've priced your house correctly.
Above all, remember that no viewings probably means your house is overpriced, and lots of viewings but no offers means your house is priced correctly but something is putting off the buyers (it's normally the presentation).
Selling for what your house is truly worth is simply a matter of:
- Selling when the market is strong
- Presenting your property as well as possible
- Not being in a position where you're pressured to sell
- Pricing your house competitively against its competition
If you can do this you will take control of your sale and be in the best possible position to sell for maximum profit (within a convenient time frame).
At the House Sales Advisory you will learn how to get the best from estate agents, online conveyancing solicitors and mortgage lenders. You will also find free guides on property valuation, selling property privately and how to deal with cash house buyers.