Is it time to drop my asking price?
Is it time to drop my asking price?
5 things to consider first…
We know the score. You’re frustrated, fed up and frankly, at your wits’ end. Perhaps viewings have dried up. Or maybe you’re just sick to the back teeth of an endless stream of strangers traipsing through your home, leaving behind a trail of mud on your newly cleaned carpets, wishy-washy feedback and, ultimately, no offer to purchase.
Life feels like an eternal limbo, and you’re nauseous from riding the wave of expectation, eternal optimism and existential dread – dread that you may never sell your home and move on.
The good news? You’re not alone. Countless homeowners are asking that same question: Should I drop my asking price?
Perhaps your estate agent has even suggested you reduce your asking price. However, for many homes, and in particular for premium price homes, reducing the asking price may not work in your favour, instead making buyers wary. Rather than drawing in offers, you could find the price reduction (especially a series of price reductions over a period of time) could raise suspicions that (a) something is wrong with your home, or (b) you are desperate to sell. Such misconceptions could lead to potential buyers creating a distorted impression of your home before ever viewing it.
The surprising news? We are here to tell you NOT to drop your asking price. Or at least not before reviewing our five, key considerations:
- How low will you go?
By reducing the price of your home, you are sending a clear message out to all your potential buyers. This message reads: I’m not sure my home is worth the price I am asking for it. Displaying this lack of confidence in the worthiness of your own home is dangerous. If you’re not sure of its value, why would a buyer respect the price tag?
Showing a willingness to reduce your price leaves you vulnerable to low ball offers, and the question you have to ask yourself is, how low are you willing to go in order to sell your home?
If you really are committed to reducing your asking price, it needs to be an impactful change. As buyers tend to search 10% either side of their budget, your reduction needs to be at least 10% in order to reach the fresh sets of eyes you are looking for.
- How long will you wait?
Statistically speaking, the longer your home remains on the market, the harder it is to sell. The more you reduce the price of your home, the more people will potentially question its appeal.
According to Rightmove data, those who drop their asking price are 10% less likely to sell. Even for those who do achieve a sale, the stats suggest your home will take twice as long to sell.
- Why do you need to reduce?
What’s changed? If your initial valuation was conducted with research and care, why do you need to drop the price? Has demand changed, or has your agent not read the local market accurately? Speak to your agent and ask them specifically why a reduction is needed.
- What else can be done?
Reducing your asking price should be the absolute last port of call. Instead, with your agent, review alternative ways of making your home more noticeable to potential buyers.
If you’ve been on the market for some time and your photos are looking seasonally out of date, it might be worth taking new outdoor images. Freshen up your existing photos with some lifestyle shots of the kitchen or bedrooms. Twilight, and aerial photos can be so eye-catching on Rightmove and other portals, to help your home stand out from the crowd.
- What are viewers saying?
If you have had some viewings, but they have not resulted in offers, press your agent for specific feedback. Often, viewers are reluctant to criticise a home, even when it falls short of their criteria, however, this feedback could be essential to helping you address any potential issues in order to receive that all important offer.
Viewers rarely wish to give negative feedback directly to the owners, which is one reason why it is important to allow your agent to conduct viewings.
Finally, if you are feeling the frustration of playing the home move waiting game, here are some of our tops tips on how to get the wind back in your sails and escape the domicile doldrums:
- Seek out additional valuations
Before you drop the price – get expert advice on whether or not the price is, indeed right.
- Step back and relaunch
If you’ve been languishing on the open market over the winter months, perhaps it’s time for a break. September to January are traditionally the trickiest months to sell. Set yourself up for a spring relaunch.
- Track the market
Is it currently a buyer’s market, or a seller’s market? If it’s the former, then consider taking a temporary break from the market, watch the signs and get ready with a new plan of attack as the market shifts.
We understand the frustration of living in limbo, so if you need to talk about why your home isn’t selling, our listening ears are ready. Please don’t hesitate to contact us by phone, text or in person, and with our years of industry experience, we will share our honest advice and thoughts on your specific situation.