Why you shouldn't be scared of reducing the price of your home.
Is your property already on the market but not seeing the results that you wanted, and you're not sure what to do? If your marketing has gone stale and you are not seeing the interest you'd hoped for, it may be time to adjust the price of your property. Read this article to find out how to correct the pricing strategy of your home to encourage view
Selling your home is a process filled with frustrations, and many enter the market with a feeling of trepidation. One of the biggest concerns is, "Will my house even sell? What if we don't get any offers?"
If your property hasn't seen much interest, your agent will likely begin to discuss the market and your pricing. Is that the only option? Won't it seem like you are desperate to sell if you reduce the price?
Homeowners will often start to consider their position. 1) Do they really want to move? 2) Should they take the property off the market and stay put? Or 3) How much will they need to reduce? Is that money just lost now?
If there is little interest in your property, then the demand is low. As we know, a market and, subsequently, the perceived value of anything is affected by supply and demand. If there is no demand for your property, then there is unlikely to be a sale. Along with your estate agent, you need to assess your property's marketing so far, decide on the issue, and address it.
In a rising market, if you don't have viewings quickly, you can sit it out and wait for the market to catch up with your pricing. After a few months, the market value will have increased, and your price will no longer be high. Those viewing appointments will start to be booked, and the offers will roll in.
But in a buyers' market, where more properties are available than potential buyers, the chances of the property values increasing to catch you up are very slim. Buyers will simply feel that your price is too high and scroll past your property.
Once upon a time, it was thought terrible form to alter the market price of a property. The buyers will see that you've reduced and assume you're desperate for a sale, often leading to eye-wateringly low offers. But that is certainly not the case anymore. If you haven't moved house for many years, you may still feel that correcting the price is very bad, but with a changing market, it is very common.
There are a few key things that you must remember about property pricing.
The market is constantly changing, and property values fluctuate.
Estimating a marketing price for a property is just that, an estimation. There is no guarantee that the market will tolerate the price for which you have decided to market your property.
It is better to show your property as a reduction than to stick to your original pricing stubbornly. You will likely not sell if you don't alter the price to meet the market value.
So, what should you do if your property marketing gets stale?
- Assess the marketing so far. Meet with your estate agent and review what has been done and how successful it was.
- Assess the value of the property and how it compares with other recently sold properties. Using this evidence, you can see clearly whether your price is a little high.
- Decide on a new strategy. A new pricing strategy, relaunch to the market, refresh the images and presentation of the property and marketing to get things moving.
A new price will open your property listing up to new buyers that perhaps wouldn't have seen your home in their search because it was out of their budget. It will show the buyers who've seen your property that you've been realistic about your marketing and have corrected your pricing accordingly. They might have previously discounted your property because of the price, and now it's realistically priced; it could be the perfect house for them.
In a changing market, price reductions are certainly NOT a bad thing. Being realistic and honest with yourself about the value of your property is the only way to get those offers. If you're unwilling to adjust the price to a realistic figure, you might be better taking the property off the market altogether and staying put. Trying to sell at a price that's too high will result in no sale, so be proactive and realistic to get your home sold.
Regular reviews of the market and how your property is performing are essential to a successful sale. At By Design, our partner agents have many years of experience and are highly skilled. They have worked through many property markets and can advise you of the best action.
