Setting guide prices

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presidenttttt

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There are a limited number of threads on this subject, all of which are over 10 years old, hence a new post.

Has anyone got an informed view on the strategy for setting a guide price?

There is generally 3 schools of thought;

1. Set something very reasonable, get some traffic and interest, and give the seller the best chance of a multiple bidders.
2. Guide at the Estate Agent (EA) valuation- see note below.
3. Be ambitious where similar properties, but not all, are rocketing past their asking price by 60-90k-100K.

I think it is clear that right now we are in a sellers market so possibly weighs heavy on the optimum strategy?

Note, guiding at the EA valuation can be tricky, if not confusing, when they have different views on just how hot the market is, and they have little to compare with (property is not in an estate and is immaculate, with extremely limited examples of similar this year). This is not Dublin market, but it is in the commuter area.
 
It may be a sellers market, but you need the right product for that to happen. What's immaculate to you may not be to someone else. Not everything sells and location is as important as ever.
 
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If there is little to compare with you can select from a number of approaches.

Are you in a hurry to sell, if so the option 1 above.

If no hurry, and especially if no recent sales in the area, I have seen a house sold recently for €250k more than two EAs valuation. They valued at €280-€300. The third EA asked the vendor if they were happy to take a chance, nothing to loose except a few months if it didn't work out.

The house was put on the market for €595k and sold for €550k. It was a four bed detached in a location where €300k was a reasonable estimate. The buyer was from overseas.

Where there are no comparable properties, the asking price conveys a signal.
 
I think you can be guided by the E.A. if they are good at their job.

Some years ago when we were looking to buy I watched our local estate agents and how quickly the properties sold. One particular agent was cheap on charges but properties sat on the market for up to a year and quite often changed hands to another E.A. I Googled reviews on them and there were some dreadful comments about them. A friend who was thinking of using them said their attitude was dreadful and unprofessional. Suppose at the end of the day you generally get what you pay for. I would prefer not to name them.
 
It depends on the property. If it's generic in a high-demand area price low to get them through the door and bidding started.

If it's a more unusual property it might make sense to price high. The first bid you get might be the only one.
 
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