Should I lower my asking price?
It can be challenging to sell a house, especially if it sits on the market for a long time with no interested buyers. As a last resort, a lot of homeowners think about lowering their asking price, but is this always the wisest course of action?
It can be challenging to sell a house, especially if it sits on the market for a long time with no interested buyers. As a last resort, a lot of homeowners think about lowering their asking price, but is this always the wisest course of action?
It's important to speak with your estate agent to gain the necessary information you need prior to making any decisions. Ask your estate agent why they think the reduction in price is appropriate, and consider whether the market or demand for properties similar to yours has changed dramatically.
Even if lowering the price could attract more attention, it might also have unforeseen repercussions, especially for high-end properties. In this blog, I will go over the pros and cons of lowering your asking price to provide you with the information you need to make a wise choice and improve your chances of making a sale.
The Pros and Cons of Price Reduction
For some properties, reducing the asking price may attract potential buyers who couldn't previously afford it. Price reductions may also be necessary due to urgent moves or impending repossessions.
It's important to keep in mind, though, that lowering the asking price might not always be the best course of action, particularly for expensive homes.
A price drop can cause suspicion among buyers, who may wonder, "What’s wrong with it?” A buyer may not want to risk buying a house that seems to be falling in value. A property with lots of historical price drops is inherently unattractive to a buyer, as each drop can signify a red flag, so if you do decide to drop the price, make sure your price drop is big and impactful and only do it once.
Let's look at some different tactics that can help you achieve your asking price rather than automatically lowering it.
Effective Marketing and Presentation
There are other factors that can affect the sale of your property besides price. To maximise your marketing efforts, work closely with your estate agent. Aerial views, twilight photos, and up-to-date lifestyle photography could help increase the appeal of your property. Putting your property on display in the best possible way can greatly boost its desirability and aid prospective buyers in visualising themselves living there. To increase your house's "saleability," consider investing in professional home styling.
Negotiation and Timing
It's crucial to find a balance between getting a good price and moving the sale along when negotiating with prospective purchasers. While some haggling is normal, it's best to avoid giving up too much. Properties often sell for between 95% and 97% of their asking price, with the reduction being achieved through negotiations.
Timing is equally important. You may need to modify your price expectations if there are any deadlines that must be met or if there are any personal reasons why a transaction must happen quickly.
It's important to think carefully before lowering your property's asking price. Keep in mind that setting an asking price is only the first step in the selling process. Having a well-thought-out plan in place, looking into various marketing strategies, and staging your home to its best advantage can all help with a successful sale. Whether you decide to change the asking price or pursue alternative options, it's crucial to be confident in your choices and seek advice from experienced professionals.
If you would like more advice on whether reducing the asking price of your property in North West London is the right decision for you please give us a call on 0208 381 4970 or send an email to info@moreland.uk.com.