At Nestor Shanahan Auctioneers we believe setting an asking price is one of the most important decisions a seller makes when bringing a property to the Irish market. The objective is not necessarily to choose the highest figure imaginable. A well-considered asking strategy should attract the right buyers, generate genuine interest and create the conditions for a successful sale, while still reflecting the property's location, condition, features and current market demand.
Pricing a property can be difficult because sellers naturally have an emotional connection to their home. Years of improvements, maintenance and memories can make it tempting to place a premium on the property.
Buyers, however, are assessing the property from a different perspective. They are comparing it with alternatives currently available and considering what similar homes have recently sold for.
This is where an effective asking strategy becomes important.
1. Start with realistic market evidence
The strongest pricing decisions are based on evidence rather than expectation.
Recent comparable sales in the same area can provide useful information about what buyers have actually been prepared to pay. Asking prices can also provide context, but they do not necessarily reflect the final price achieved.
A property may be advertised at a particular figure for months without attracting serious interest. Another may generate several offers soon after coming to market.
Sellers should therefore consider properties that are genuinely comparable in terms of location, size, condition, accommodation, garden, parking and other relevant features.
Local market knowledge can be particularly valuable because property values can vary considerably between nearby streets, neighbourhoods and towns.
2. Avoid pricing so high that buyers overlook the property
One of the risks of an ambitious asking price is reducing the number of potential buyers who consider the property in the first place.
Many buyers search online using price ranges. If a property sits above an important search threshold, it may not appear in the results seen by a significant group of potential purchasers.
For example, a buyer searching within a particular budget may never see a property listed slightly above their maximum, even if they could have considered it under different circumstances.
The first few weeks on the market can be particularly important. A property that attracts strong initial interest has a greater opportunity to create momentum.
This does not mean sellers should automatically choose the lowest possible asking price. It means the asking strategy should take buyer behaviour into account.
3. Understand the difference between price and value
Asking price and market value are not necessarily the same thing.
A seller may believe that a recently renovated kitchen, new windows or extensive landscaping should add a particular amount to the property's value. Buyers may appreciate these improvements without valuing them at their full cost.
This is an important distinction.
The money spent improving a property does not always translate directly into an equivalent increase in its selling price. The market determines what buyers are willing to pay.
A strong asking strategy considers improvements alongside the property's overall position in the local market.
4. Use competition intelligently
Creating competition can be a powerful part of a successful sale, particularly where there is genuine demand for the type of property being offered.
An appropriately positioned asking price can encourage more buyers to arrange viewings and potentially lead to multiple interested parties.
Competition should never be manufactured through unrealistic expectations or misleading marketing. Buyers are increasingly informed and can compare properties, recent sales and market information quickly.
The aim should be to create genuine interest by presenting a property at a price that encourages qualified buyers to engage.
If several buyers see value in the property, the seller may have greater negotiating strength.
5. Consider the property's unique selling points
Not every property should be priced by looking at size and bedroom numbers alone.
A property may have features that make it particularly attractive to its target market. These could include a south-facing garden, excellent parking, a desirable location, a high BER, sea or countryside views, an unusual level of privacy, a recently upgraded heating system or proximity to schools and amenities.
The important question is whether these features are valued by buyers in the local market.
A feature that commands a premium in one location may have much less influence elsewhere.
A local auctioneer can help sellers understand which characteristics are likely to attract buyers and how those features compare with competing properties.
What happens if the property is priced incorrectly?
An asking price that is too high can result in fewer viewings and limited enquiries.
Over time, the property can become familiar to buyers who have already rejected it at the original price. A subsequent reduction may then attract attention, but the seller may have lost valuable time.
There can also be a perception issue. Buyers may wonder why a property has remained on the market for an extended period or whether there is an underlying problem.
Conversely, pricing too aggressively can create strong interest but may leave the seller questioning whether they could have achieved more.
This is why pricing should be approached as a strategy rather than a single number.
The importance of reviewing the market
The property market does not remain static.
Buyer demand, mortgage conditions, competing properties and local supply can all change. Sellers should therefore remain open to reviewing their strategy based on the response received.
If a property generates significant viewing interest but no offers, the issue may not necessarily be the asking price. Buyers may have concerns about condition, presentation or specific features.
If there are very few enquiries or viewings, pricing may need to be reconsidered alongside the property's marketing and presentation.
The response from the market can provide valuable information.
The right price should create opportunity
A successful asking strategy is about positioning the property so that buyers recognise the opportunity.
The aim is to encourage serious buyers through the door, give the property the best possible chance of generating offers and ultimately achieve a strong result that reflects its true market position.
For sellers, this requires a degree of objectivity. Your home may have significant personal value, but buyers are making a financial decision based on their own circumstances and alternatives.
By combining recent market evidence, local knowledge, an honest assessment of the property's strengths and an understanding of buyer behaviour, sellers can create interest without unnecessarily compromising the property's value.
If you would like to discuss buying or selling a property, contact us on 061 415337 or email info@nestorshanahan.ie or visit nestorshanahan.ie.
Disclaimer
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
