Richard James Estate Agents Blog

Introducing the Goldilocks Principle

When valuing a home with a view to selling in the spring, it’s easy to be tempted to set your price too high, hoping to cash in on a bigger profit.

Alternatively, some may go too low, with the aim of a quick sale.

But as we’ve learned over the years, the ‘Goldilocks Principle’ of property pricing is fundamental to your success.

It’s particularly relevant in the spring, as there’s a window of opportunity due to potential buyers awakening from their winter slumber.

Allow us to explain.

What is the Goldilocks Principle?

Just like the porridge in the popular children’s story, Goldilocks, your property’s price shouldn’t be too ‘hot’ (high) or too ‘cold’ (low). It needs to be ‘just right’.

Set the price too high, and potential buyers might be scared away, causing your property to linger on the market.

It might sell quickly if priced too low, but you could miss out on significant, life-changing profit.

Finding the ‘just right’ price – that sweet spot where the property is attractive to buyers yet still ensures you receive the value you deserve – is a fine art/science we’ve been perfecting for years.

Initial impact

The initial period after valuing and listing your property is critical, creating a window of high visibility and potential buyer interest. This is an especially key period in spring, when there’s more competition among sellers to get their property noticed. Priced accurately, your property can attract keen buyers willing to pay reasonable value, capitalising on this peak period of interest.

An overpriced property, on the other hand, may push potential buyers towards more reasonably priced alternatives.

Remember, property pricing is about finding the ‘just right’ balance, something we are here to help you with.

In a nutshell

Go up for sale for an unrealistically high price, and you’re just ‘on’ the market, not ‘in’ the market.