Getting the marketing price right when selling your home, what is the most successful strategy?
When it comes to selling your home in today’s competitive market, pricing strategy plays a crucial role in the outcome. One approach that often sparks curiosity is advertising a property for sale substantially below the Home Report value. Here are the pros and cons.
When it comes to selling a home, first impressions matter and price is one of the first things potential buyers see. In Scotland, pricing strategy often starts with the Home Report value, which is intended to be a fair market valuation provided by a qualified surveyor. However some estate agents choose to advertise properties substantially below this value to attract attention.
At Property Connections, we believe this strategy can often do more harm than good. Our pricing strategy would be to market most homes at slightly under home report value. For example, a property with a home report value of £250,000 would most likely be marketed at either offers over £245,000, or offers over £248,000 which is just under the Home Report value, and that makes strategic sense, setting the price correctly will attract the right buyers and achieve the highest possible price for your home. Marketing your home at a very low price is much more advantageous for the estate agents own needs, but here at Property Connections, we believe getting the right buyer is more important than gaining more business.
What Is the Home Report Value?
In Scotland, the Home Report is a legal requirement for all residential property sales, unless you are buying a new build. It consists of three parts: a Single Survey (which includes the property's market valuation), an Energy Report, and a Property Questionnaire completed by the seller. The valuation, conducted by a chartered surveyor, is a professional estimate of what your home is worth on the open market at the time of the report.
Why Some Agents Advertise Below the Home Report Value
Some agents promote the idea that pricing your property substantially under its Home Report value will attract more interest online, spark a bidding war and ultimately lead to a quicker sale. We have seen many homes over the last few months being marketed this way, while this might sound like a smart tactic, the reality is that marketing your home substantially under home report value introduces serious risks. We take a more balanced, evidence-led approach, for instance, a home valued at £230,000 should in our opinion be marketed at Offers Over £225,000 or £228,000. This attracts viewers/ buyers who can afford your home and gives a clear indication of the owners expectation of achieving at least home report value or above.
The Negatives of Advertising Your Home Too Low
1 - Attracting the Wrong buyers
When a property is marketed far below its true value, you risk attracting interest from buyers who simply can’t afford the actual selling price. This leads to wasted viewings, false hope, and delays in identifying serious, qualified buyers. Instead of encouraging competition, you could end up fielding multiple low offers that don’t come close to the Home Report value, which wastes everyone's time.
2- Damaging Your Properties' Perceived Value
Buyers can be savvy. Therefore, if your property is listed significantly under valuation, many will immediately wonder;
- Is something wrong with it?
- Is the seller desperate?
- Are you looking for a really quick sale?
This suspicion can undermine confidence and reduce genuine interest - especially from buyers who are financially ready and looking for quality, well-valued homes.
3- Frustration For First-Time Buyers
Lowering asking prices can draw in first-time buyers who believe the property is within reach. When the expectations of achieving at least home report are discussed with the viewer, it creates disappointment and distrust. In some cases, they may pull out of future negotiations altogether as they can be wary of being misled again.
Our Approach
A well priced property brings in the right kind of buyers in the sense they are serious, qualified and confident. This is why we recommend listing just under the Home Report where appropriate (e.g. Offers Over either £225,000 or £228,000 on a £230,000 valuation). This creates just enough flexibility to invite strong interest, while maintaining transparency and protecting your home’s market valuation.
Final Thoughts
While advertising below the Home Report value might seem like a smart marketing trick, it can often do more harm than good, especially when the differential on the home report value and marketing price is substantial. Sellers risk damaging the perceived value of their property which wastes time with unqualified buyers. Do you want an influx of viewers who ultimately cannot afford your home? Life is busy enough without preparing your home over and over again for viewers who can't afford to offer even home report value.
Before setting your asking price, make sure you’re working with an estate agent who understands the local market, your property's potential, and how to protect its value. At Property Connections, our advice is always grounded in honesty, strategy, and results.
Marketing a home at a much lower home report value will ultimately benefit estate agents stats. This then shows potential sellers what they have 'achieved' over the 'asking price' for homes that they have marketed. Twenty EA is a great tool for agents obtaining lots of interesting information locally and many Estate Agents use this site to obtain information. Twenty EA works out estate agents prices and percentages achieved over asking price. Twenty EA has developed this system with the English way of working in mind (there are no home reports in England) and does not take into consideration actual home report values. We are keen to gain trust with our honest approach, and always will give the best advice no matter what the stats show. Our aim is to market your home correctly priced and achieve the best possible price on your highest value asset.
Our top tip- Always ask and make sure you are happy with the reasoning behind marketing your home at a much lower price than home report value.
Thinking of selling? Contact us for a free valuation and personalised marketing strategy. Let’s get your property sold..... for the right price.
Call us: 01506 650 550
Email us: info@propertyconnections.uk.com
Visit us: 80 North Bridge Street, EH48 4PN, Bathgate, West Lothian