How to sell a house House prices

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Setting a realistic asking price for your home is essential

House prices are always moving one way or another and setting your asking price too high could mean your house takes longer to sell than necessary - it's important to get it right. 

Ultimately, your expectations need to be realistic, since a property is only worth what a buyer is willing to pay, but there are a number of factors to consider when setting your asking price. 

Three steps to setting realistic house prices

Use these handy hints to figure out how much your house is worth:

  • Look in local newspapers, estate agents’ windows and online to see how much similar properties are on the market for. Try to come up with three to five properties that are comparable to yours in size and features, and see what house prices apply to them.
  • Next, bring in three estate agents which have recently sold similar properties and ask them for a property valuation. Don’t simply pick the highest amount - use the research you have done to work out a realistic level to set your house price at.
  • Consider the minimum price that you can accept for your house and still be able to afford the property you want to move to. Be realistic, but don’t forget that you may be able to recoup whatever discount you give on your own house price with a similar discount on the one you’re buying.

It may be worthwhile having a survey done yourself before you put your property on the market. If there are any problems with your house this will give you a chance to fix them or - if your property gets the all clear - the report can be used to show buyers what great condition your property is in.

House price surveys

House price surveys (or indices) track the price of residential housing and can be useful for determining your property's value. They were first provided by mortgage lenders, but there are now also indices produced by government bodies and property websites as well.

There are quite a few house price surveys to choose from: Nationwide, Halifax, the Department for Communities and Local Government (DCLG), the Land Registry, Rightmove, the Royal Institution of Chartered Surveyors (RICS) and Hometrack all produce them.

Each of the above collect their data in slightly different ways, which means they often come up with different conclusions.

Some use mortgage approvals, while others use asking prices, sale prices, estate agent data or surveys of surveyors.

Indices of house prices can show you whether house prices are rising or falling, by how much and in which areas of the country. That said, property markets work at a much more local level than most house price indices, so while they can be useful, they should not replace the research you carry out yourself by talking to local estate agents and looking at properties that have sold in your local area. 

The Land Registry survey is probably the most useful, as its report is based on completed sale figures, whether or not the property is mortgaged. In addition, the report can be searched right down to postcode level.

Need mortgage advice?

We believe you should seek independent mortgage advice before taking out a mortgage. The Which? Group offers an independent mortgage advice service, Which? Mortgage Advisers, that looks at every mortgage from every available lender. You can also find an independent mortgage adviser using the Unbiased website.

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