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If you're thinking of selling your house this winter, you'll need to think carefully about what price to list it at.
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 that goes on 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.
New data from the property portals Zoopla and Rightmove show sellers are increasingly having to cut their asking prices in order to find a buyer.
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 in November, up from 45 days a year ago.
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 what their fee (usually charged as a percentage) might be.
Don't be taken in by these estimates. In some instances, an agent may be inflating the price in an attempt to get you to instruct them ahead of the competition.
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.'
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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 Savills, a UK-wide estate agent, 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 you can make a balanced decision on which agent to instruct.'
We also spoke to the buying agent Henry Pryor, who buys £100m worth of homes for clients each year.
He says the asking price is '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 up the price.'
Some sellers list their homes as 'offers over' or 'offers in excess of' a specific figure, but Pryor says this is just posturing.
'"Offers in excess of" 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.
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:
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