How to Set the Right Asking Price for Your Property

How to Set the Right Asking Price for Your Property

When the time invariably comes to sell your home and move onto bigger (or smaller) pastures, one pivotal decision that could affect your selling experience is what price to market your property at.

In Birmingham - one of the UK’s most dynamic, vibrant, and diverse property markets, particularly in the bustling city centre - determining the best asking price for your property can be a complicated process for homeowners. Prices for apartments and townhouses are naturally going to be higher than properties further afield, but wherever your property for sale is, setting the right asking price is vital for a timely, stress-free and successful transaction.

This short guide covers all you need to know about establishing the right price for your property in Birmingham.

Get the property price correct the first time

It can be tempting, as a seller, to set an inflated asking price for your property to begin with, in the hopes that it will encourage healthy negotiations. While an astute strategy for some, especially considering recent asking price trends, sometimes this can be counterproductive. 

Properties that are priced as a fair reflection of their market value are, statistically, more likely to attract more viewings, enquiries and offers, especially during those vital first weeks when interest is at its highest. As interest wanes the longer your property remains on the market, enquiries and offers will likely be in much shorter supply. 

Therefore, it makes sense to set a price correctly from the outset, rather than demand more. Competition will be higher in those first few weeks, meaning that interested buyers could well offer you more anyway. It’s not as likely to occur if the price is too high to begin with.

Recent data shows that homes requiring price reductions often spend longer on the market compared to those with a fair market price. What’s more, the likelihood of a sale falling through increases when a property’s price is reduced, as buyers may also question why the property hasn’t sold at its original asking price.

How to value properties professionally

Before setting the appropriate asking price, it’s important to establish what factors are considered when determining property value.

• Market analysis: Estate agents like Maguire Jackson conduct a full assessment of your property’s features, location, quirks, age, and unique selling points. They’ll compare sales of properties in the same region of Birmingham while noting current market trends and demand.
  
  

• RICS valuations: Homeowners often like to consult a RICS (Royal Institution of Chartered Surveyors) valuation. These independent valuations provide an objective assessment following stringent standards. While this comes at a cost, it’s helpful for homeowners with unique, older, or unusual properties, or those in locations where market conditions aren’t as clear-cut.
  
  

• Location segments: Birmingham city centre properties are valued exceptionally cautiously. The difference between properties in the Canal Quarter and those in Digbeth can be stark. This is why it’s handy to partner with estate agents who understand these micro-markets and how they influence buyer expectations.

• City proximity: Properties within walking distance of Birmingham's central city districts often command higher prices. The Bullring, Grand Central, Symphony Hall and Brindleyplace - to name a few - are considered landmarks within the urban centre, and thus properties near them could demand higher asking prices.
  
  

• Connectivity: Birmingham is a well-connected city with a substantial transport network, including the Metro tram system and the HS2, eventually. Properties near the main lines of New Street Station, Moor Street or Snow Hill will undoubtedly attract higher asking prices.
  
  

• Building specifications: Many City Centre apartments have concierge services, secure parking, up-to-date building security systems and modern amenities, not to mention being energy efficient. The condition of communal areas in leasehold buildings as well as maintenance and associated service charges, will also impact property marketability. Potential buyers are often wary of high service charges, particularly in buildings without extensive amenities, so asking prices should account for this. 

How to ensure your asking price is fair and accurate

When it comes to selling your property, efficiency, speed, and transparency remain vital, and they are all aided by setting the right initial asking price. Here are the key steps to take to ensure you nail that first time.

1. Research online - through agent websites and property portals - to see what similar properties in your area are listed for. Listing prices aren’t necessarily selling prices, which is a fact many sellers forget.

2. Remember that timing is everything. Birmingham - like all markets - experiences seasonal fluctuations, with spring and early autumn seeing increased buyer demand. If selling during competitive times, you may obtain a slightly higher price. You never know.

3. You may have your preferred timelines depending on certain circumstances. If you need a quick sale, competitive prices will likely attract immediate interest. If you can afford to wait for the right buyer, you may price towards the upper end of the realistic range.

4. Try to view your property through your buyers’ eyes. Unconventional or personalised improvements may have served you well, but will they attract interest from every buyer?

5. Maintain open lines of communication with your estate agent in terms of valuing your property. Don’t hesitate to ask questions and scrutinise opinions on asking prices. Discuss with them how they plan to market it to the right types of buyers, ensuring your property is marketed correctly for those demographics.

Going through with the sale

When it comes to the final asking price, the decision is ultimately yours. However, don’t overlook the value of insight- and evidence-based opinions that a highly reputable and experienced local estate agent like Maguire Jackson can offer you. We understand the nuances and fluctuations of this diverse market, and we can help you ensure your property is best placed to attract interest and the right sale price.

The first few weeks are critical for maximising interest, so getting it right from the start can trigger a successful sale in a fraction of the time. 

When you’re ready to take the next step in your property ownership journey, our specialists are ready to help you. Contact us today for a free, no-obligation valuation, and we’ll gladly explore what options you have and how feasible your returns could be.