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Setting the right price for your property
will directly affect how quickly you’re
able to sell your property. Too low and
it will probably sell very quickly and
leave you short-changed. Too high and
you could find yourself frustrated for
months.
Deciding what is a fair price for your
property, taking into account the location,
state of the property and, of course,
the current market conditions, is no easy
task. But with the guidance of a good
professional agent like RNR, you can reach
the optimum price bracket using a number
of factors.
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Comparative pricing
Never allow sentiment to get in the way of
objectivity. You may have great memories of
your time there but what you’re selling
is a blank canvas for someone else to make their
mark on. When searching for a new property,
buyers will often make an initial decision on
the properties they want to view by considering
the price. What have other similar properties
been selling for during recent months? Is your
property competitively priced against other
properties currently on the market in your area?
Market conditions
Market conditions can fluctuate, depending
on all sorts of factors such as national, regional
and local trend, and the current popularity
of the type of property you’re selling.
Offering incentives
Sellers typically adopt one of two selling
strategies – the rock bottom or the drop-down
approach. Rock-bottom sellers are seeking to
achieve a quick sale, so they price their property
at the lower end of the scale. Whereas drop-down
sellers will set their asking price several
thousand pounds above the price that they’d
be happy with in the hope that someone will
pay over the odds.
The pricing strategy you adopt will probably
depend on how much time you have to test out
the market. If you want to use the drop-down
approach, you should sit down with your agent
at RNR and work out a schedule of how long you’re
willing to wait before lowering your price.
You should plan a schedule to regularly review
the price until you find a level that attracts
buyers.
Estimating Your Net Proceeds
Once your agent has helped you decide on the
market value of your property, you’re
ready to calculate how much money you'll actually
receive when your property has sold –
information you’ll need if you’re
planning to buy another property. To do this,
subtract the following from the estimated sales
price:
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Any outstanding
amounts on your present mortgage loan(s); |
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Any mortgage prepayment penalties; |
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Estate agent commission; |
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Solicitor fees; |
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Any unpaid tax; |
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Any survey fees; |
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Title insurance premium; |
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The cost of any inspections
and repairs |
Conveyancing
Outline
A PDF document outlining a simple
conveyancing transaction.
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