Selling Your Home? Let’s Talk About Dropping House Prices & Reducing Your Asking Price In The Current Property Market
A lot of people find selling their home more difficult than they perhaps had originally anticipated. It could be that the sale is taking longer because the property is getting less interest on the market, and this can happen for a number reasons combined.
One thing sellers often ask is whether or not they should consider lowering the price of their property in order to help it to sell.
Today, we’re going to be talking about why properties don’t sell, and in what situations we should consider dropping house prices.
Why am I Finding it Difficult to Sell my Home?
Before delving right in and talking about dropping house prices in order to sell, we should probably take a look at the reasons why you could be having issues selling your home in the first place:
- You’d be surprised at just how many reasons there can be behind the fact your home isn’t selling – and it’s more often than not, things we don’t even think about.
- A prime example of this, would be putting a property on the market for too high an asking price.
- The fact of the matter is, that as long as you get an accurate valuation and put your property up for the right price, then it should sell on any market.
- One of the most common mistakes amongst home owners, is over valuing, or accepting an over valuation of the property.
- Thinking you can always get more for your property is not a sensible way of approaching the sale of your home. it could result in you ultimately ending up worse off for it.
- What tends to happen when a property is listed on the market for too high a price, is that it remains on the market for a long time.
- Like with many things, property listings tend to have a shelf life. If they’ve been on the market for too long, then it’s likely that potential buyers will begin to avoid them, because they’ll automatically assume the reason it’s not selling, is because there’s something wrong with the house.
- Even if they do end up being interested in the property, they’re very likely to ask for a reduction on price in these circumstances.
- Another reason why your property may not be selling, is because you haven’t thought properly about the way that it’s being presented to buyers on the market. Remember, that first impressions absolutely do count, and no more so than in the property industry. Buyers do have a right to be picky when choosing their largest asset, you know!
- In order to impress them from the outset, you’ll want to ensure you’re doing any decorating – whether that be the interior or the exterior – before putting the property on the market.
- Two of the most important rooms in the house when selling are the kitchen and the bathroom. If these are not modern or well decorated, then it could negatively impact the sale of the house overall. Bathrooms and kitchens tend to be a make or break for a lot of buyers.
- Furthermore, just make sure you’re keeping things as nice as possible! Cleaning, tidying and decluttering does not go unnoticed in the process of selling your property. Also be sure to acknowledge any smells that could be off putting in the property, for example pet smells and so on.
- Finally, try and ensure that you’re presenting each room with the right purpose.
- We know, a lot of you probably have rarely used dining areas and spare bedrooms that you use for storage, but this won’t look particularly appealing from an outside perspective. It’ll also make it far more difficult for them to imagine the potential a room has, unlike if you presented a spare bedroom as a guest room.
- Remember to make it easy for your buyers. The more positive their viewing experience, the more likely they are to show real interest in the property.
Right. So if I’m having Trouble with the Selling Process When Should I Consider Reducing the Overall Price of My Home?
So, we’ve taken a look at some of the main reasons why your property may not be selling, and what you can do to ensure this doesn’t happen to you.
But what if, despite doing the right things your home isn’t selling, or you’ve already put it on the market and can’t afford to wait any longer. When is the right time to consider reducing the selling price of your property?
These are some of the things you should be considering before you choose to reduce the selling price of the house in question:
How Long has the Property Been on the Market for?
First things first, you’ll want to consider how long your property has actually been on the market for:
- If your property hasn’t been listed and is only in the initial stages of being on the market, then you shouldn’t even consider dropping your selling price at this point.
- If you’re feeling a little confused or unsure, it’s always a good idea to get in touch with your estate agent, and to ask them how long similar properties are taking to sell on today’s market.
- You have to be willing to wait up until a certain point before dropping your price.
Another factor you should consider is how many viewings you’ve had up to now, which leads us very nicely to our next point.
Have You Had Any Viewings as of Yet?
You’ll also want to consider how man viewings, if any, that you’ve had yet:
- Some would argue that above all else, it’s important that you’re getting viewings at the least.
- However long the average time to sell on the market, depending on the area postcode and the time of year, it’s integral to the sale that you’re getting some viewings in the first place.
- If the case is that you’ve had no viewings whatsoever, then now is the time to speak with your estate agent, and to get their opinion.
- Ask they why they think that your property isn’t generating interest on the market amongst potential buyers.
- A lot of the time they’re likely to tell you it’s because of the price, but sometimes it can be down to the condition of your home.
- They may ask you do you think that you’ve presented your property as well as you possibly can? As we stressed above, first impressions are so
- One of our top tips would be to decorate your property in neutral colours before putting it on the market. Light, neutral colours not only help rooms to look more spacious, but they also give buyers a blank canvas to work with during viewings. Remember, they’re coming to see what they could do to the place.
- You should also be considering what your house looks like from an outsider’s perspective regarding the exterior. This is often referred to as “kerb appeal” in the industry, and it’s vitally important that you give it some attention – even if it’s something as small as cutting your front lawn and painting your front door.
- If you’ve had no viewings whatsoever, it also begs the question whether or not your estate agent is being as proactive as they can in their endeavour to sell your property.
- If the answer to this is no, it might be time to consider swapping agency.
Have You Had any Feedback from Your Estate Agent Regarding Potential Buyers’ Viewing Experiences?
Okay, so let’s say that you’ve had viewings, and no one has made an offer. Where does this leave you?
- It’s important that if you’re having regular viewings and are getting no offers, you speak to your estate agent about the feedback they’ve gotten from potential buyers in regards to your property.
- Even if they haven’t given any feedback officially, it’s important to ask about what they said – and give your estate agent full permission to be honest. This could be the key to finding out why people are not buying your house.
- A prime example of this would be someone saying that your kitchen is looking tired. This would give you some direction on the matter, and enable you to revamp the space.
- Don’t take it personally, just take the comments on board – acting on them if necessary.
- If you can afford it, you could pay to have your kitchen modernised and so on. If not, there are some great DIY bits you can do to transform the space.
- If you can’t change your kitchen at all, however, you may want to consider reducing the price of the property, to make up for the costs the buyer will have to pay to update the kitchen.
How Many Agents Valued Your Property in the First Place?
It’s worth asking yourself the question, how many agents actually valued your property in the first place?
- In the initial stages of putting your property on the market, it’s important that you ask two or more estate agents to value the property. This will help you to get an overall idea of the market at current, and the kind of price your house should go for according to agents in the local area.
- Remember that some agents, however, work on commission. This means that they will tell you whatever you want to hear in order to acquire your business. This is why you shouldn’t always go for the most expensive valuation.
- They may also do this in order to make you feel good about your property. Either way, it’s likely that if this is the case, a few weeks down the line, they’ll suggest reducing the asking price.
- The issue is, if this is the problem, then it’s likely that you will have to reduce the price early on.
- If this is the case, be sure to take a look at the contract between yourself and the estate agent in question. If you can get out of it, great – if not, you may have to let the term of the contract run its course.
Is the Property Being Shown to its Full Potential?
As we’ve stated more than once, first impressions count. So is your property being shown off to its full potential?
- As well as taking into account what potential buyers say about the property during viewings, you’ll want to be looking at how it compares to other similar houses.
- Have any work and decorating done before putting your property on the market.
- Remember the importance of kitchens and bathrooms, so pay particular attention to these spaces.
- People are put off very easily. They like to get a good feel of the house, and if you don’t give this to them, then they’re likely to lose interest.
Have You Spoken to Your Estate Agent about it Not Selling?
Being in contact with your estate agent can be crucial in helping to sell your property:
- If your house isn’t selling, be willing to sit down and have an honest discussion with your estate agent as to why.
- There are a variety of reasons why your property may not be selling, and your estate agent should be able to pin point what these are.
- Be open minded in discussing price and other strategies with them. If you feel they overpriced it in the first place, be sure to ask why.
Would You Have an Open House?
It’s a fairly Americanised concept, but have you considered hosting an open house?
- Open house sales are good at generating interest and competitiveness between potential buyers.
- A number of people in one house can give the impression that it’s popular, and therefore more desirable.
- Furthermore, it can lead to there being multiple offers made on the property, which is an ideal situation to be in as a seller. A bidding war makes it more likely that you’ll get your asking price or beyond.
- Anything that pushes up price and popularity, is worth a try.
Is the Time of Year Affecting Your Sale?
It’s surprising how much the time of year can affect the property market:
- There are “good” and “bad” times to sell. Regarded as one of the best times of year to sell is often Easter time.
- An example of a “bad” time to sell your property, is on the lead up to Christmas. No one wants to move in the midst of festive chaos!
- If you have listed your property at a less fruitful time of year, you could consider taking it off the market and putting it back on at a later date.
Is it a Buyers’ Market Out There?
You may have heard of a “buyers’ market”, and if we’re in one at the time of sale, it could be bad news for you as a seller:
- Your house will sell dependent on where it is, and the type of property it is. Speak to your estate agent about the market right now.
- A buyers’ market is often a “slow to sell” market. You’ll usually have to do deals with buyers and reduce the price, should this be the case.
- The good news is that if you’re moving in a buyers’ market, you’ll get your new property for less too. Peaks and troughs, ey!
Other Things to Consider:
Here are a few final things you might want to consider:
- Speak with your estate agent, and find out of any outside sources that could be affecting the property market.
- Ask friends to come around and take a look at your property honestly – it’s good to get an outside perspective.
- Be sure to consider the reasons why your property isn’t selling, and whether they can be solved, before dropping the price.
We hope we’ve helped to clear up any confusion regarding dropping house prices!