When is the Time to Reduce Your Asking Price?
When selling any property, your initial asking price is a figure determined by several well-considered factors: its condition, location, comparable properties, the current state of the market and more. As a result, reducing that price can strike a blow to your confidence in the property’s desirability. Still, whether due to time constraints, lack of buyer interest or changes in the market, price reductions are sometimes a necessary and beneficial decision. If you’re starting to consider the prospect of lowering your property’s asking price, it’s crucial that you do so at the right time and for the right reasons. That’s why we’ve put together a guide to help you decide when, if at all, to take the leap and slash a chunk off of that asking price.
Have You Evaluated Your Marketing Efforts?
Before you drop that asking price, think about how you’ve been marketing your property. Have you had much guidance? If not, there could be several aspects of property promotion that you’ve overlooked or mishandled. Many struggling sellers find that the lack of interest in their property is a direct result of ineffective marketing, especially if it’s primarily listed online. These potential oversights should be addressed before resorting to lowering your asking price; in some cases, they can actually be more effective at generating interest than a price reduction.
Plentiful, high-quality photos are crucial for inspiring confidence in prospective buyers, and a lack of these will raise major red flags in anyone browsing the property market. Even the most beautiful properties can appear ugly if its photos are blurry, poorly-lit or improperly framed. An estate agent can help you with taking attractive property photos, and it’s well worth hiring the services of a professional photographer if you suspect your photos aren’t up to scratch. If you’re willing to go the extra mile, you can also create an interactive home tour using a series of photos. This gives viewers a much better idea of your house’s layout and helps build buyer confidence.
While photos make the first-and most lasting-impression on a potential buyer, a compelling property description can’t be neglected. It’s your chance to give your property some personality and share what makes it unique. Make sure it’s easy to read and not bland; enticing adjectives are essential. Be careful though, it’s easy to get carried away and oversell your house with endless overenthusiastic exclamations. This is off-putting to most people and can raise suspicions in particularly discerning buyers. Be aware of your house’s most desirable features and bring them to the surface without dwelling on every mundane detail.
Additionally, failure to advertise your property on all possible platforms could be limiting the amount of buyer interest you’re receiving. The myriad of property listing websites (Rightmove, Zoopla, Primelocation, etc.) plus your estate agent’s own website, newspapers and a well-placed for sale sign all contribute to optimal exposure for your property. Most important for operating in today’s housing market are property listing websites. Don’t be afraid to list your property on multiple places; even social media can be a valuable tool for attracting buyers.
Is Your Property Presentable?
Much like how an attractive house’s appeal can be ruined by poor photos, good photos can be ruined if the house itself is in poor condition. If you’re struggling to draw in prospective buyers, and your marketing efforts are without any serious faults, your house may need to be made presentable for buyers. This doesn’t necessarily mean that your house is in disrepair or is even especially unsightly, but properties that appear “lived in” do not perform as well as ones that possess a pristine quality. Here are some useful tips to help sell your house, they may not all be relevant to your property however some should prove useful.
Clearing your house of clutter; temporarily removing distinguishable personal items such as family photos, posters and keepsakes; and rearranging furniture to maximise openness and lighting exposure will help buyers project their own lives onto your property and increase the likelihood that they’ll become emotionally invested in your property.
Finally, curb appeal, the sight of your house from the road outside, is an incredibly important factor that determines the quantity and frequency of buyers interested in your property. Freeing the front garden of weeds, cutting the grass, washing the driveway and cleaning the windows all contribute towards this all-important process. On top of driving up interest, curb appeal also increases a buyer’s estimation of a house’s value and reduces the likelihood that they’ll attempt to haggle when negotiating a final sale.
Speak to Your Estate Agent and/or Another Local Professional
The housing market is different in every village, town or city; seasonal changes affect the market too. Only a local professional or your estate agent can make judgements based on your specific situation, location and circumstance. Speak to them regarding any oversights you may have made throughout the house-selling process. It’s possible that an issue unique to you is turning buyers away. They can determine if a tactic other than the ones mentioned here or elsewhere online may be necessary to make your property appealing.
Likewise, an external professional may advise alternative methods of selling your property if the housing market isn’t working in your favour. If the speed and ease of a sale is important to you, reputable property buyers like LDN Properties are a smart choice. They’re able to evaluate and provide a free estimate for your property. If you agree to sell to them, they handle the entire process-including legal paperwork-at a time frame that suits you. Estate agency isn’t the only way to approach selling a house, and if the slow pace of waiting for buyers is causing issues for you, these property buyers may be for you.
How to Reduce Your Price
Your house is in perfect shape and your marketing strategy is without a flaw, so why are the weeks passing by without significant interest from buyers? It could, sadly, be your asking price after all. Perhaps it’s time to think about trimming a little off the top of your original figure. How would you go about that?
Speak to Your Estate Agent (Again)
Before making any firm choices, you should again discuss your feelings and concerns regarding asking prices with your estate agent. Especially if they’re local, they’ll be able to advise you on a sensible reduction that will increase interest without causing too much financial harm for you.
Compare to Similar Properties in Your Area
Market conditions can change quickly from season to season; it’s possible that what was once a sensible valuation for your property is now considerably outdated. Take a look at what other properties are selling for in your area right now and compare them to what you’ve been asking for. Bringing your property in line with similar ones in your area can be a good place to start when reducing your asking price.
Don’t Chip Away at Your Asking Price
One tempting strategy employed by many sellers looking to reduce their asking price involves making multiple minor reductions over the course of weeks or months. While this decision makes some sense-theoretically minimising the total reduction necessary to complete the sale-it can ultimately backfire if buyers or their estate agents take note and grow wary of any unmentioned faults or issues. It may seem unappealing, but you’re better off reducing your house price in one significant move rather than incrementally.
Lowering your asking price should never be a go-to choice, but if you’ve exhausted all other options, discussed with professionals and analysed your local housing market, it might be the right one. Of course, there are always alternative methods of selling a house; property buying companies don’t need to be enticed with high-quality photos and pristine front gardens, so you’re never truly out of options if traditional buyers can’t be interested.