What is my house worth, and what asking price goes with that? Find out how to determine the value of your home and what to look out for when setting a realistic asking price.
Setting the asking price is one of the most important steps in selling a home. An asking price that is too high can lead to less interest, while one that is too low may leave opportunities on the table. But how do you arrive at an amount that suits your home and the current housing market?
In this blog we explain which factors influence the value of a home and how to arrive at a realistic asking price.
What is the difference between market value and asking price?
Market value is an estimate of what a home could fetch under normal market conditions. The asking price is the amount for which you put the home up for sale.
These amounts do not have to be the same. The final sale price is determined by buyer interest, negotiations and the conditions in the housing market.
A well-founded asking price is in line with the market value, but also takes into account the sales strategy and the current supply of homes.
How do you set the asking price of a home?
Several factors are important when setting the asking price.
1. Comparable homes and recent sale prices
One of the most important steps is comparing your home with similar homes in the area.
Think of homes with a comparable:
Living area and plot size.
Type of home and number of bedrooms.
Location and neighbourhood.
Level of maintenance and finish.
Recent sale prices in particular give insight into what buyers have actually paid for comparable homes.
A home listed for €450,000 is not automatically worth €450,000. The asking price of another home does not tell you the same thing as its final sale price.
2. Location
Location has a big influence on the value of a home. Factors such as the popularity of the neighbourhood, proximity to schools and shops, accessibility, green space and privacy all play a role.
There can be differences even within the same neighbourhood. A home on the water or in a quiet street, for example, may be valued differently from a comparable home on a busy road.
3. State of maintenance
The state of maintenance and level of finish partly determine how attractive a home is to potential buyers.
Important points of attention include:
The kitchen and bathroom.
The roof and window frames.
The heating system.
The finish of floors and walls.
Any overdue maintenance.
A well-maintained home can be more attractive than a comparable home that still needs a lot of work. Bear in mind, though, that a renovation does not automatically mean every euro invested comes back in full in the sale price.
4. Energy label and sustainability
Energy-efficient living plays an increasingly important role when people buy a home.
The energielabel (energy label), insulation, glazing, solar panels and heating system can all influence how attractive a home is.
As a seller, it is wise to have a clear picture of how energy-efficient your home is. As a buyer, it is important to look not only at the energy label but also at the expected energy costs and any future investments.
5. The current housing market
The housing market is constantly changing. The balance between supply and demand, mortgage interest rates and buyers' financial means can all affect how easily a home sells.
An asking price that was appropriate a few months ago may no longer be realistic today.
That is why it is important to always look at current market conditions when setting the asking price.
Why is a realistic asking price important?
A well-chosen asking price helps bring your home to the attention of the right target group.
You reach the right buyers
Many house hunters work with a maximum budget. An asking price that does not match the market can mean your home falls outside potential buyers' search criteria.
You avoid an unnecessarily long time on the market
A home that has been for sale for a long time can attract less interest. A later price reduction can also affect your negotiating position.
You start the sales process well
A realistic asking price gives clarity to both seller and buyer and is an important part of a good sales strategy.
A realistic asking price is no guarantee of a quick sale, but it does help to position the home well.
What can buyers learn from the asking price?
It is also important for buyers to look critically at an asking price.
The asking price is a starting point, not a guarantee that the home will be sold for that amount.
As a buyer, pay attention to:
How it compares with similar homes.
The state of maintenance and any renovation costs.
The location and the energy label.
How long the home has been on the market.
Your overall financial means.
So do not just look at the asking price, but at the whole picture. A slightly more expensive home may, for example, involve fewer extra costs than a cheaper home that needs a lot of work.
How does an estate agent help set the asking price?
An estate agent looks at the complete picture to arrive at well-founded sales advice.
This includes looking at:
The features and condition of the home.
The location and surroundings.
Recent sale prices of comparable homes.
The current supply of homes.
Demand for the type of home in question.
The seller's wishes and sales objectives.
Based on this, an estate agent can advise on a suitable asking price and sales strategy.
Local market knowledge is important here. Differences between neighbourhoods, types of home and price ranges can have a big influence on the value of a home and how easily it sells.
Setting the asking price: good advice makes the difference
Setting the asking price is more than just comparing homes online. It requires insight into the home, the location and the current market.
Whether you want to sell your house soon or would first like to get an idea of its value: a professional valuation gives you clarity and helps you make well-considered choices.
Curious what your home is worth?
Are you thinking of selling your home and would you like to know what asking price is realistic?
Contact us for personal sales advice, free and without obligation. We would be happy to look at your home, the current market and the options for a suitable sales strategy together with you.
That way you know where you stand and can take the next step well prepared.
