How to set an asking price for your home
When it comes to selling your house, setting an asking price is a big financial decision.
Finding that ideal price point can take a little bit of time. As a seller, you don’t want to sell your house for less than it’s worth, and you also don’t want to price it too high and leave your home sitting on the market. Getting the value right is worth it, and is much easier than you might think.
How much can I sell my house for?
It’s important to sell your home for a reasonable price as it will help put you in a good financial position. You don’t want to sell yourself short. Setting an asking price can be made much more simple by breaking it down into easy steps.
1. Look at the market trends
It can be difficult to know what you’re looking for when it comes to market trends, but you don’t need to be an expert to make sense of them.
Market trends fluctuate regularly, so it’s worth keeping up to date when you’re considering selling your home.
- Economic health: Things like low unemployment, low inflation and good wages create an increase in consumer confidence. If people are more financially secure, they are more inclined to move house and pay more for a property.
- Property supply and demand: House prices may fluctuate depending on how many properties are on the market. Where housing is sparse, prices may be higher. In contrast, house prices may be lower in an area that has more available properties.
- Interest rates: The Bank of England decides the base interest rate. A higher interest rate would mean that the cost of borrowing increases, which makes people less inclined to move.
2. Compare with your neighbour
Check out the Land Registry to see your neighbours’ recent sale prices. This can help guide you on what property in your location sells for, so you can better estimate your property’s worth.
3. Get your property valued
While you can use online calculators to get a rough estimate of your property’s value, we always recommend getting an in-person valuation.
If you’re in Newcastle Upon Tyne or nearby, book a free property valuation with us!
Can you sell your house for any price?
By law, there has to be a monetary exchange for a house sale to occur. But legally, you can sell your house for any price, even as low as £1.
If you are looking to sell your property below market value, it’s important to consider the extra costs of selling a house.
Can I sell my house for less than its value?
The answer is yes, but it’s important to bear in mind what you want to gain from selling your house below market value.
If you’re in a rush to sell your house, you can speed up the sale by putting your house up for sale below market value and it may attract cash buyers, making the sale process even quicker. There are other options such as auctions. Our guide offers advice on how to auction your property, which can sometimes offer a speedier sale.
If you’re looking to sell your house below market value, or to your child for a lower price, there are additional home-selling costs you must account for before deciding if it’s right for you.
- Legal fees: You’ll need to hire a solicitor to organise the legalities of the sale, even if you are only selling to your child.
- Capital Gains Tax (CGT): If you bought your property over 10 years ago, then it’s highly likely your property has increased in value and you will be liable to pay CGT. If you’re selling your property below market value, make sure you have enough money to cover these taxes.
- Inheritance tax: If you die within 7 years of transferring your property to your child, they will be liable to pay inheritance tax if the property is worth over £325,000.
- Stamp Duty Land Tax (SDLT): The transaction fee for a residential property that is sold for more than £125,000 incurs SDLT.
Mortgage costs: Keep in mind that if you have an outstanding mortgage, your sale price should exceed the remaining mortgage. Otherwise, you might have to remortgage your new property to pay it off.
Who can help me set an asking price?
If you’re thinking about how to sell your house, just remember that you don’t have to do it alone. Mortgage valuers and estate agents can be a great help when it comes to getting the right price for your property.
- Estate agents: They know the local area well and will be up to date on the latest market insights, so they can advise you. Always be sure to choose an agent with a good track record of achieving an asking price.
- Property valuers: Property valuers can offer you the best guidance on how much to set as your asking price.
What month is best to sell a house?
According to Home Alliance Owners, the best time to sell your house is in the spring. This is the time when buyers (particularly families), are not caught up in the Christmas festivities or the summer holidays.
Autumn is also a good time to put your house up for sale as many buyers are keen to get transactions sorted before the festive season.
Selling in the North East?
If you want to get your house sale off to a good start, the right price starts with a great estate agent. At Mansons, we pride ourselves on fast communication, integrity and agents that care.
Over 80% of our agents have been with us for over 10 years, so you know that you’re in the right hands. We’ll make sure we find the best price for your property, contact us today to make a start on selling your house.
