As we all grapple with high mortgage rates and a rising cost of living, more homes are remaining on the market for longer.
In a buyer's market, sellers asking for too much risk being significantly knocked down on price, or their property not shifting at all.
But what factors go into setting an asking price, and is it really important or just part of the dance between seller and buyer?
Read on to find out what the experts think, and for advice on the factors that impact how much you'll get for your home.
Sellers slash prices to lure buyers
Zoopla says the average discount buyers achieved in November was 5.5%, compared to 3.4% in the first half of the year. In monetary terms, this equates to an average reduction of £18,000.
Rightmove found that price reductions are becoming more commonplace. It says 39% of homes had their prices slashed in 2023, compared to 29% in 2022.
Properties took an average of 66 days to find a buyer this November, far longer than the 45 days recorded a year ago.
Find out more:How are asking prices set?
It's often suggested that sellers should get three quotes from local estate agents for their services.
The agent will visit the property and provide an estimate of what they think it might sell for, and thus what their fee (usually charged as a percentage) might be.
Don't be too taken in by these estimates. For example, in some instances, an agent may be plumping up the price in an attempt to get you to instruct them ahead of the competition.
Additionally, experts routinely encourage homebuyers to see an asking price as just that - a guide to what the seller wants, rather than what the home is worth.
Some estate agents even state this in their advice to buyers. In a blog on its website, Foxtons says: 'you might start with a lower offer to give yourself room in negotiations...buyers sometimes try 5-10% below the asking price as a first offer.'
The importance of realistic pricing
In a slow market, experts are encouraging sellers to be realistic about what their property is worth, and not be swayed by the agent offering the highest estimate.
Rightmove says sellers coming to the market in 2024 'will need to compete with cut-price neighbours and work with their agent to start marketing at a competitive price, rather than starting too high and needing to reduce later'.
Robin Chatwin of the national estate agent Savills told Which?: ‘Adopting the correct price helps generate enthusiasm in buyers that a more subdued market does not provide. Pricing realistically from the start can achieve excellent premiums.’
The agent you choose should be open about why they're recommending a specific price for your property, and have proven local knowledge.
Andrew Groocock of Knight Frank says: 'Have they shown you comparable properties, have they sold a similar home to yours, and what price did they achieve?
'Agents should provide complete transparency on price, based on facts, so that you can make a balanced decision on which agent to instruct.'
Find out more:Part of the marketing
We also spoke to the buying agent Henry Pryor, who buys £100m worth of homes for clients each year.
He describes asking prices as 'just part of the marketing'.
He told Which?: 'If you want to attract my attention as a buyer, set your asking price where I would expect it to be. This tells me you appreciate that the market has changed and that you are serious about selling.
'I may well end up paying over the guide, but then the asking price has done its job. It got me interested, got me to go and see the property and got competition in the shape of other buyers who pushed the price up.'
'Offers in excess'
Some sellers list their homes as 'offers over' or 'offers in excess of' a specific figure - but Henry Pryor says this is just posturing.
'"Offers in excess" is used by agents who disagree with their client's expectations but can’t bring themselves to tell them.
'It’s a way of acknowledging the seller's expectations but trying to keep the guide as competitive as possible', he says.
Tips on setting the right asking price
Check out local homes on the market: Keep an eye out for price reductions: See how much properties have sold for: Get expert advice:How to make your home more attractive to buyers
Homebuyers are always told to view properties as a blank canvas, but there’s no doubt that the presentation of the home can have an impact on the likelihood of getting an offer.
Robin Chatwin of Savills offers the following advice on preparing your home for viewings:
Kerb appeal is crucial: Keep it tidy, but not impersonal: Do basic DIYBanish smells: Tidy up the garden:Which? Limited is registered in England and Wales to 2 Marylebone Road, London NW1 4DF, company number 00677665 and is an Introducer Appointed Representative of the following: 1. Inspop.com Ltd for the introduction of non-investment motor, home, travel, pet, van and temporary insurance products (FRN 610689). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd. 2. LifeSearch Partners Limited (FRN 656479), for the introduction of Pure Protection Contracts, who are authorised and regulated by the FCA to provide advice and arrange Pure Protection Contracts. LifeSearch Partners Ltd is registered in England and Wales to 3000a Parkway, Whiteley, Hampshire, PO15 7FX, company number 03412386. 3. Which? are an Introducer Appointer Representative of Optimise Media Limited (FRN 313408), for the introduction of HSBC Group, who are authorised and regulated by the Financial Conduct Authority to provide credit brokering activity. Optimise Media is registered in England and Wales to Exchange Street Buildings, 35-37 Exchange Street, Norwich, England, NR2 1DP and company number 04455319. We do not make, nor do we seek to make, any recommendations on financial products or services that are regulated by the FCA, as we’re not regulated or authorised by the FCA to advise you in this way. In some cases, however, we have included links to regulated brands or providers with whom we have a commercial relationship and, if you choose to, you can buy a product from our commercial partners. If you go ahead and buy a product using our link, we will receive a commission to help fund our not-for-profit mission and our campaigns work as a champion for the UK consumer.
source https://www.which.co.uk/news/article/selling-your-home-how-to-set-the-right-asking-price-aUIAe2U7if6O