The Value of Sold

Our last article considered some of the dangers associated with pricing your home in relation to other properties available for sale (ie those remaining unsold). This time we’ll consider pricing in relation to properties which have actually sold.

When considering what asking price to quote for your home, common sense dictates that the price of other homes which have sold locally should be a good indicator of the price you should be quoting. However, your research could well prompt you to price your property at a level which could prove difficult to sell. In this weaker market it is a sure bet that the price achieved for a property is highly unlikely to be achieved again, and may well represent a snapshot of the market several months ago.

Additionally whilst a property might have been advertised at a particular figure, it could well have actually sold substantially below this.

Irrespective of national trends, the property market is very sensitive to imbalances in supply and demand even on a street by street basis. When there are many qualified buyers all seeking a rarely-available house in a popular street the price goes up. If fate dictates that the following week five such houses become available in the same street, the price will inevitably fall.

Likewise there can be situations where a property is sold at a record price to an individual who particularly wanted a specific property for personal reasons. Conversely a situation could arise where a desperate seller, who might otherwise suffer repossession, agrees a sale at a very low figure for a quick sale.

Only the estate agent involved in any of these transactions knows how the individual circumstances of sale can affect value. So a word of caution – leave the science of valuation to an experienced local estate agent who is highly active in the market and has a good track record of achieving swift sales at or close to his/her suggested asking price.