If you are serious about selling in 2025 then pricing is going to be key to gaining buyer interest and achieving a successful sale. But why is it so important?
Buyers still have the upper hand
It remains – at the moment, at least – a buyer’s market and while interest and demand are increasing there aren’t yet the sheer volumes of buyers for sellers to be picky or to demand inflated prices. You’ll need to work hard to attract buyers to your property and since price is one of the first things they will consider, you should aim to get it right first time.
Prices must be realistic
Prices continued to rise in 2024 and further growth is expected of up to 4% by the end of 2025. However, buyer affordability challenges remain until mortgage and interest rates fall further, despite the February base rate cut. If you want to secure a buyer, you’ll need to pitch your asking price to their budget not to what your property might have sold for at peak.
In order to generate maximum value, and to ensure your final selling price is closer to your asking price, you should try to price a maximum of around 5% above what you hope to achieve. This will give buyers wiggle room to negotiate without putting too much pressure on you.
The right price generates interest early on
Pricing correctly at the outset will prompt early interest in your property and hopefully a diary full of viewings. By contrast, if prices are set too high then the property might sit on your agent’s books largely ignored before being discounted at a later date. At this stage, potential buyers may start to question why a price cut was needed and whether there might be something wrong with the property.
Buyers are confident there are no hidden nasties
When buyers can see a property is priced as they would expect, and in line with similar properties locally, they become more confident about what they are getting for their money. While pricing too high could put them off, pricing too low could also suggest that a nasty surprise might be lurking or that there’s another worrying reason for a speedy sale. This could also put them off viewing even if there’s nothing untoward.
Achieving the asking price you want and need
Your selling price helps to guide you to how much you might be able to afford for your next property. That can mean that your next purchase can rely on achieving the asking price you want. If you’ve not priced correctly offers might be far below what you’d expected, which may impact your moving plans.
Generating excitement and bidding wars
Finally, the right price can be key to a successful sale by generating interest amongst a number of buyers rather than just a selected few. This can make it more likely that you’ll get the asking price you want, rather than having to accept a reduced offer simply to shift the property.