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Unlock your home’s value:

The ultimate guide to accurate and ethical pricing

Welcome to our definitive guide on accurately valuing your property.

Since 1998, we’ve been serving home sellers and buyers in Leicester, gaining extensive knowledge and insights about property pricing.

Our experience has taught us that accurately pricing a property is vital when it comes to successfully selling.

It’s about more than just making a sale. For many of us, our home is our most significant tax-free asset, and for some, getting the best possible price can potentially have life-changing benefits.

We understand this and are committed to ensuring the price is not only right for you, but also attractive to potential buyers.

This guide will show you:

  • The factors that contribute to an accurate property valuation
  • Common myths and misconceptions about pricing property
  • The potential pitfalls of overpricing and underpricing
  • And a wealth of additional insights and tips we’ve gathered over the years

We’ve written this guide with a view to helping people who are considering selling. But the principles apply even if you’re just curious about getting a valuation.

Either way, give us a call if you have any property-related questions you want expert answers to.

We’re here to help.

 

 

  • Why accurate pricing is so important

Introducing the Goldilocks Principle

When valuing a home in Leicester with a view to selling, it’s easy to be tempted to set your price too high, hoping to cash in on a big profit.

Alternatively, some may go too low, aiming for a quick sale.

But as we’ve learned over the years, the ‘Goldilocks Principle’ of property pricing is fundamental to your success.

Just like the porridge in the popular children’s story, Goldilocks, your property’s price shouldn’t be too ‘hot’ (high) or too ‘cold’ (low). It needs to be ‘just right’.

Set the price too high, and potential buyers might be scared away, causing your property to linger on the market. If it’s priced too low, it might sell quickly, but you could miss out on significant, life-changing profit.

Neither scenario is ideal (nor is getting caught stealing food and lodgings from hangry bears).

Finding the ‘just right’ price – that sweet spot where the property is attractive to buyers yet still ensures you receive the value you deserve – is a fine art/science we’ve been perfecting for years.

Initial impact

The initial weeks after valuing and listing your property are critical, creating a window of high visibility and potential buyer interest. Priced accurately, your property can attract keen buyers willing to pay good value, capitalising on this peak period of interest.

An overpriced property, on the other hand, may push potential buyers towards more reasonably priced alternatives.

So, accurate property pricing is not just important – it’s paramount.

Remember, in property pricing, it’s about finding the ‘just right’ balance, something we are here to help you with.

 

Property price pointer: Go up for sale for an excessively high price, and you’re simply ‘on’ the market, not ‘in’ the market.
  • influencing factors on your home’s valuation

1. Location, location, location:

The old adage is true – where your home is located has a major influence on its value. From proximity to good schools, amenities and transport links to the overall appeal of the area, location can, and does, significantly impact the price.

2. Property size & layout:

The overall square footage and layout of your home matter. Additional features like a garden or a garage can add to your home’s appeal.

3. Condition & age

A well-maintained, modern home is more attractive to buyers than a similar but in worse condition property (unless you’re seeking a doer-upper). The age of the property also influences its value – older homes can charm buyers with their character, while newer homes often require less maintenance.

4. Leicester market trends

The health of the local property market in Leicester can’t be overlooked. A seller’s market, where demand outpaces supply, usually increases home prices, while a buyer’s market might mean more competitive pricing is required. This changes based on the financial climate, so give us a call to find out what kind of market we’re in right now.

5. Recent sales

The selling prices of similar properties in your neighbourhood can give a clear indication of what buyers are willing to pay.

Property price pointer: Beware the online valuation ‘guesstimate’ such as the likes that portals like Zoopla offer. These can be tens of thousands of pounds apart in their valuation of the same property.

Common mistakes when valuing your property

Overconfidence in renovations

While home improvements can add value, not all renovations translate into a higher selling price. Just because you love your bespoke wine cellar or the avant-garde mural of Elvis in the living room doesn’t mean a potential buyer will value it as much.

Ignoring the market

AKA Market Myopia which translates to not ‘seeing’ current Leicester market trends. This can lead to setting unrealistic expectations. Even if your neighbour sold their home for a high price last year, changes in the market could mean different circumstances for your property.

Emotional pricing

We understand your home holds a lot of sentimental value, but pricing should be a rational decision based on data and demand, not memories and emotions. Overpricing due to emotional attachment can and will deter potential buyers.

The online valuation trap

Online valuations can be wildly inaccurate and are often based on outdated or incomplete data. Don’t fall into the trap of taking these figures as wholly accurate. Ask the local experts – us.

Unscrupulous agents overpricing

Some agents might overvalue your property just to win your business. They promise a high selling price to entice you to list with them, but it often results in the property sitting on the market for a long time due to being overpriced. Check out the perils of overpricing on the next page to see what that looks like in real life.

Property price pointer: Beware of the likes of ‘Dave’ – the local pub’s in-house property expert (whose only connection to the housing market is he has a roof over his head) telling you your home is worth £X amount.

The role of good estate agents in pricing accurately and ethically

We are experienced experts in Leicester market trends and dynamics. This knowledge is crucial in generating an accurate valuation and getting any potential sale started on the right foot.

Our valuation process begins with an in-depth, onsite evaluation of your property. We consider its size, condition, location and unique features. But we don’t stop there. Less tangible aspects, such as current market demand, local amenities and school catchment areas, are also factored into our assessment.

We’re not in the business of overpromising to secure your instruction or underestimating to achieve a quick sale. Our goal is to provide a realistic and honest valuation that aligns with the current market and is achievable.

Beyond the valuation, we offer professional advice on presenting your home to maximise its appeal to potential buyers.

Remember, a good estate agent is your partner in the valuation/selling process. We’re here to guide and support you, putting your interests first. By choosing us, you’re choosing transparency, expertise and a commitment to your property’s true value.

Property price pointer: Don’t fall into the twin traps of overpricing and underpricing – your property’s worth more than someone else’s fast commission.

Your valuation myth buster

Below are four common myths homeowners often encounter.

The myth is stick it on high and get offers lower.

The market simply ignores this, and one month later, any prospective buyers assume it isn’t a good purchase or ‘there’s something wrong with it’. The majority of attention a portal listing will get typically happens within the first 48 hours of going live as many buyers are alerted by the portals/agent (the hot buyers who are motivated to move). The daily views then dwindle significantly. Put simply: Go on for too high a price, and you’re just ‘on’ the market, not ‘in’ the market.

“The online valuation told me my property is worth £500,000. What do you mean it’s only worth £450,000?”

Online valuations are, at best, guesstimates, and nothing beats an experienced agent popping round to give you an accurate, personalised valuation.

“I’m always getting estate agent leaflets through my door, telling me my house will sell really fast as there are loads of buyers for my road.”

This may be true, but often isn’t, especially in slower markets. Remember the mantra, ‘Evidence breeds confidence’ – if these claims can be backed up by solid proof, they’re worth considering, if not, bung the leaflet in the recycling.

Beware of next-door syndrome.

“Bob and Janet’s house went on the market for £400,000, and ours is so much better, so we want £450,000.” When you delve a little further, you’ll see Bob and Janet have been on the market for 11 months, reduced five times and are now with their sixth agent.”

Knightsbridge Estate Agents & Valuers – Company Number: 03895928

Knightsbridge Professional Lettings – Company Number: 09983885

Registered Address: 72 Queens Road | Clarendon Park | Leicester | LE2 1TU

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