Do you believe that buyers never pay the asking price? Many sellers feel that way, but it’s not really true.
Most buyers are simply looking for somewhere to live that they love, and the homes that garner the most interest, sell faster, and even get multiple offers are the ones that are correctly priced.
So, where does the asking price myth come from, what can it cost you, and how can you break free? The answers are all right here, so let’s take a look at:
- Pre-internet thinking
- The agent overvaluation trap
- Misguided seller beliefs
- Overblown media messaging
- The right way to get the highest price
There’s plenty to explore, and this week’s blog will help you get that SOLD sign at the highest price your home deserves without unnecessary stress or delays.
PRE-INTERNET THINKING
The idea that homes never sell for their asking price goes back to the dinosaur days before the internet when the moving process was more opaque. Here's what it looked like:
- Estate Agent Influence: Back then, buyers had to register with agents one by one, and agents chose which homes to show them, dropping hints wherever a seller might take a lower offer.
- Information Gap: House price data as we know it didn’t exist, so sellers had fewer tools to check if the advice they were getting from agents was correct.
- Hidden history: There was no public record of when a property first came on the market or was reduced in price, so it was harder for buyers to tell which homes were sticking.
This has all been disrupted by estate agency websites, property portals and price bands. Buyers can see every home for sale in their price range and how long it's been available without talking to anyone.
Transparency now reigns supreme, which means precision pricing is vital to avoid losing valuable interest, but also that agents’ valuations are easier to understand and challenge.
THE AGENT OVERVALUATION TRAP
Nothing is sweeter than being told your home could be worth tens of thousands of pounds more than you thought, but it’s crucial to know whether that high valuation is actually achievable.
Unfortunately, one of the easiest (and laziest) ways for agents to get a home on their books is to promise the seller the earth, then change their story later on. Here’s how it works.
- Winning your business: Instead of showing you nearby recent sold prices, an agent gives you a flattering and inflated valuation that plants the seed of selling for a price that's hard to resist.
- Wearing you down: Once you’ve signed on the dotted line, the agent gradually lowers your expectations by claiming that they gave it their best shot, but the market has changed.
- Tying you up: You're locked in with a lengthy agreement that stops you from going elsewhere, effectively forcing you to give the agent an undeserved second chance at a lower price.
As well as being a disappointing experience for you, the overvaluing practice creates a landscape of price reductions that makes it look like homes never sell for their full price.
Fortunately, you can avoid this with some homework. Check the portals for sold prices from the last 3-6 months, and make sure your contract lets you switch agents easily if things don't go to plan.
MISGUIDED SELLER BELIEFS
Like most sellers, you probably love your home. It's a wonderful feeling, but that emotional attachment can lead to a rose-tinted expectation on price when the time comes to move.
While it's completely natural to see your home through a unique lens, it’s also wise to be mindful of the following potential pitfalls:
- Sentimental pricing: The magical memories you’ve accumulated are priceless moments to treasure, but they’re not what a buyer is paying for or what a mortgage provider is lending on.
- Sticky situations: When an owner insists on an inflated asking price and an agent agrees to try it, the result is usually minimal interest, unnecessary delays, and a deteriorating relationship.
- Going stale in public: The portals have created remarkably savvy buyers, exposing homes that are priced too high, showing how long they’ve been stuck, and detailing every price reduction.
The trick is to acknowledge the difference between your valued experiences in your home, and your home’s market value, which can be easier said than done but stops you from unintentionally pushing buyers away.
OVERBLOWN MEDIA MESSAGING
Property makes great content. Whether it's terrestrial telly, streaming shows, or social media gurus, we lap it all up. And while it’s highly watchable and highly readable, it often focuses on friction and drama.
- Property shows spice things up for sensational viewing, which fosters an expectation of conflict in the real world and the impression that overpricing is a necessary defence.
- News headlines stoke anxiety and rivalry, portraying moving home as a war of winners and losers, pushing sellers to inflate their asking price as they brace for low offers.
- Online influencers and experts promote negotiating hard as the norm, leaving sellers with a distorted impression that every buyer insists on a bargain.
Essentially, the messaging creates a false narrative and a self-fulfilling prophecy, which often makes the experience of buying and selling far more complex and stressful than it needs to be.
THE RIGHT WAY TO GET THE HIGHEST PRICE
Correctly priced homes that are fresh to the market find it easier to generate excitement and competition among buyers, and when it comes to setting your asking price, it looks a little like this.
- Compare similar homes in your area that have actually sold recently to gauge how high you can set your asking price while still looking like an exciting prospect for buyers.
- If you really want to add a negotiating margin, make sure you stay within the price band for homes like yours to avoid struggling against stronger competition from more expensive property.
- Boost your speed of sale and selling price with perfect viewing presentation and using an agent with professional photos, inspiring descriptions, and social media stories in their toolkit.
Ultimately, buyers want to view homes that tick as many of their boxes as possible, not least that they can afford them, and an inflated asking price can deter the best of them or make you invisible.
What’s the perfect asking price for your home?
The myth that buyers always need a discount is just that – a myth. What really matters is generating excitement among the highest number of high-quality buyers in the shortest space of time.
We’d love to help you get that right, so call us on 03338 802 602 or email us at enquire@three2six.co.uk to see how we sell homes in Birmingham for the very best price with data-driven and expert local knowledge.
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