WWYD - how to price our flat?

[HabitualLurker]

I've outgrown my wee flat (new addition to the family) and was about to put it on the market next week. We hadn't quite decided on the price, but were going to market it at something around the 220'-230k mark. Yes, silly money, but it's London.

My dilemma now is that only this week another flat on our road has come onto the market. Same size, different layout, in worse condition than mine. And they've priced it at 250k. I think this is bonkers and there's no way they'll get that much - the estate agent is well known for over-pricing.

So I'm not sure what we should do. 220k may now make people think there's something wrong with our flat in comparison. Our estate agent is suggesting we follow suit and go for something between 240k amd 250k, but that just seems utterly unrealistic to me.

What would you do?

I think you need to work out realistically what you think it's worth and looks at what similar properties close by have recently sold for. But also bear in mind that in some areas of London at the moment the market is moving very quickly.
I think people who massively overprice are crazy (although it's only £20k more than your price so it's not like it's madly unreasonable) - that initial time when you go on the market is so important. If your gut instinct was 220/230 I wouldn't go massively over it. And if there's lots of interest it would end up going for full asking or sealed bids anyway.

I would go £240k with a view to getting £230k

Not bonkers and as you say it is London so it's definitely worth aiming higher

Can you give it a couple of weeks and see what happens with the other flat? Otherwise I think £240 to get £230 is a good plan. Am also in London and just marketed our flat at £235 to achieve £225 - we had three offers at asking price! The market is bonkers at the moment.

Part of the problem is that we don't really know what it's worth. We had two estate agents round to value it and they both said probably 220k-230k, but that it was a bit of a stab in the dark since nothing similar has sold in the area for several years.

I know 20k isn't that much of a difference, but it's really not a big flat at all, and 250k seems more like the price of a Victorian conversion (which my flat is not)- they tend to go for more round here.

If you saw two flats available at the same time, one 10% cheaper than the other but seemingly nicer what would you think? That one was overpriced, or that there was something dodgy with the other?

I would be tempted to see what happens with the other flat, but we're desperate to get under off asap. Prices are rocketing around here and I'm really worried that we won't be able to afford anything larger at this rate. I hate this situation - property is just so ridiculously priced all of a sudden.

You'll kick yourself if it flies off the shelf at the asking price, would always wonder what if...

I would view both flats and make my own mind up if I saw two at varying prices.

Is a quick sale or a higher sale price more important to you?

If the first, I'd price at £225k, the second £240k

FamiliesShareGerms that's the pertinent question really. Good thinking. Will put that to my other 'arf.

Quick would be good since we can't put serious offers on anything without being under offer ourselves. On the other hand there's a dearth of suitable property for us to buy, so it may still take a while to find anything to buy.

Gah.

I would price at £245 - anyone doing a search will usually search up to £250 so you'll pick up the same potential viewers as £230 and it being London and property generally moving quickly you may well get an offer between £230 and £245 so you'd be better off and more able to afford your new place. Make your EA aware that you will consider offers and give if a go. If you don't get any interest you can always drop it after a few weeks

Depends on where in London you are. Prices in general are rising. If you put it on at a lower price and get an offer for the asking price quickly you might regret not asking a higher price.
When I sold my last property I put it on at a relatively modest price and held out for that, resisting accepting lower offers (we had already moved out, so no delays for buyer which probably helped) but that was in a relatively cheap area in a not very desirable provincial town.
I think tactics in London would be very different.