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Do You Need To Reduce Your Price?

If you have been on the market for a while and are starting to see declining interest your estate agent may suggest you reduce your asking price. Naturally you want to get the best possible price for your property so how do you know if you really do need to reduce your price?

There are three key aspects to selling a property; the marketing, the pro-activeness of the estate agent and finally the price. Some estate agents can be quick to recommend a price reduction but my advice would be to wait until you are sure both the marketing and estate agents approach are the best they can be and to only then carefully consider a price adjustment.

Marketing

The quality of marketing details prepared for your property will have at least as big an impact on the interest you receive as the price will. The photos need to be exceptional and really show off the best features of your property. The description and floor-plan are also a really important part of the advert and need to help grab the interest of buyers.

Have a critical look at the current marketing of your property and think about whether it really sells its best features and makes it stand out. If you aren’t confident that the marketing is the best it can be than this is something that needs rectifying before looking at doing anything with the price.

Your Estate Agent

There are some great estate agents out there but unfortunately there are also many complacent agents that are more inclined to wait for the perfect buyer to phone rather than doing anything pro-actively make a sale happen. To give yourself confidence that you do have the right estate agent you might have to undertake a little bit of detective work!

Ask a friend to phone your estate agent to ask about the property and also to send an email enquiry through. This will give an insight into how positively the agent speaks about your property and how quickly they respond to enquiries. If you have any doubts or concerns in this area than this is something you want to rectify either with your agent or by switching to a different one before considering the price. If you aren’t confident that your agent is doing everything possible to sell for you then how do you know that the problem isn’t them rather than the price?

Price

If you are completely happy with the above areas and still not getting the interest you expect then it is probably time to consider your pricing. A mistake often made is to make a minor price reduction which will almost always have either minimal or zero impact. The point of changing the price is to encourage buyers who wouldn’t otherwise have viewed it to take a look and to ensure that a different group of buyers become aware of it.  Reducing from £200,000 to £195,000 is not going to make much difference and could even have a negative impact as the property would no longer appear in search results for people looking between £200,000 to £210,000.

Sometimes a good alternative to a straight price reduction could instead be a change of pricing strategy. If you are on the market with an asking price then lowering the price but changing to ‘offers over’ could be an effective way to generate interest and potentially create a competitive situation between buyers where the price is bid upwards.

If you do need to reduce the price then the key is to make a sufficient enough change to attract interest and get your property sold as you definitely don’t want to have to reduce again at a later date. A property that sits on the market for a long time with multiple small price cuts is not going to attract as much interest as it could as some buyers will disregard it assuming that there is something wrong with it. It’s much better to be pro-active and make a sizeable reduction whilst reverting to an ‘offers over’ strategy which should then get plenty of buyers viewing again hopefully attracting multiple offers.

I hope you have found this useful and if you would like to discuss your specific situation and get an independent opinion then please do give me a call on 01332 30 30 30 or email me at andrew@aksresidential.com.

 

If you haven’t already than a great article to read next would be ‘4 Signs it’s Time to Change Agent’. Take a look here.

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