REDUCING YOUR ASKING PRICE?

Posted on Thursday, August 31, 2017


REDUCING YOUR ASKING PRICE?

It is common knowledge that property in 2017 has generally been taking longer to sell than in 2016. For some homeowners it really doesn’t matter; not everyone needs to move to a specific or pressing deadline and those who have the time will quite often happily sit and wait.

 

But let’s say that, for whatever reason, you do want or need to get moving within a certain timescale and that having looked at every aspect of the marketing, presentation, viewings and feedback, it looks like the asking price of your property is the obstacle to generating the correct enquiries.

 

Reducing your asking price should allow your estate agent to achieve all of the following:

 

  • re-ignite interest among previous viewers
  • generate new enquiries from the property portals
  • alert an existing database of registered buyers with a corresponding budget

 

Vitally important with a price reduction is to only have to do it once to secure a sale. Or, at least, that should be your aim. Doing it piecemeal will most likely result in you chasing the market down, reducing by too small an amount to find that a few weeks or months later you need to lop off more than the initial suggestion, and perhaps more than once.

 

A single price reduction is forgivable. More than that and your property will start to look stale and unsellable; not something you or your estate agent will want to have to deal with as a background to all enquiries and viewings. It’s also good to remember that a properly executed price reduction is exciting, whereas subsequent ones are less so. And it’s excitement that gets property sold.

 

So this means a good, honest conversation with your estate agent about what your best move should be. There isn’t a one-size-fits-all formula for every property, but there are some factors you could take into account.

 

For example, a price reduction of less than 5% is unlikely to change things, so for every £100,000 you are asking, look at taking at least £5,000 off. (At the top end of the market, you may find nearer 10% is what makes the difference.) It’s also worth ensuring that your new asking price will put you in a new price range on the property portals – a guaranteed way to reach a new audience in what is the greatest source of enquiries.

 

Because we provide constant feedback to every homeowner, not just from every viewing but also the general response to their property from people who choose not to view along with an overview on the prevailing market conditions, conversations around price are generally very open and mature discussions because nobody is being left in the dark. Where it becomes difficult is when an estate agent who hasn’t kept in touch for weeks on end suddenly phones up and recommends a price reduction – they lose all credibility and homeowners quite understandably feel peeved, let down and suspicious of their agent’s motives.

 

Nobody relishes the prospect of asking a seller to reduce their price, but whenever anyone from the Ralph James team makes that recommendation, and our clients know it comes from a relationship built on consistent contact and constructive commentary.

 

We hope these pointers will be of use should you need to reduce your asking price. And if you would like any advice or assistance with moving home in the Redhill and Reigate area, we’d love to hear from you.