Should I drop the asking price if I can't sell?
Sian Hiatt, Sales Manager, considers whether reducing the asking price of your home could help attract interest...
Have you had your property listed with an estate agent for quite some time but failed to find success with offers? If so, the first thing you may be considering as an inevitable next step to help attract potential suitors is dropping your asking price. If your estate agent has exhausted other ideas, such as refreshing the properties images/videos, expanding the marketing tactics used or improving the way your property is presented, then they may well agree and suggest you reevaluate the price you’ve put on your home.
However, is dropping the asking price really going to be the catalyst to attracting an influx of new interest? For many properties, this can certainly be the case as it may open up your property to those who wouldn’t have been able to afford it previously. It may also be a necessary step to take for those home sellers who are looking for an urgent sale for their own reasons.
With that said, there are also properties that may not benefit quite so much from a drop in the asking price - namely premium homes. In this instance, reducing the asking price may actually further harm your chances of selling, so it’s important to fully understand how the market in your specific location best operates.
How much should I reduce the asking price?
If you decide that dropping the asking price is the best way to attract new interest, consider dropping it by at least 10%. This is because reducing the asking price by less than 10% is unlikely to make much difference in the level of new interest for most properties. Buyers typically search for homes 10% either side of their budget, so you’ll likely need to reduce by at least that percentage to open yourself up to the wider market.
Before making a decision, have a discussion with your estate agent. After all, your property would’ve been originally valued based on sound research and expert opinions in the industry, although as sellers you would have the final say of course. Nevertheless, you should determine if anything has changed, ensure you or your agent hasn’t misjudged the market, and consider whether the demand has changed for your type of property. This will help you decide whether reducing the asking price is the best next step or whether you should stick it out for a little while longer.
Avoid dropping the price several times
A drop in price can spark suspicion among some buyers. They may believe there is something wrong with the home and will question why the sellers have reduced the asking price, perhaps even viewing it as a risky purchase if it seems to be falling in value. Each historic drop in price will increase this suspicion among buyers, so rather than dropping the price a little several times, make your drop more impactful and just the once.
Online property portals like Rightmove have price bandings when a potential buyer conducts a search, so ideally you’ll be able to drop your property into the next price banding below your current one. This is what will help open your property up to a host of new potential buyers.
To improve your chances of securing a sale do chat with your estate agent and raise your concerns in the lack of interest. There are many things that can be done to help make a property more saleable, and depending on your situation, it may not always mean a drop in the asking price is necessary.
For help selling your home don’t hesitate to get in touch with our expert sales team here at CPS Homes. We have branches across Cardiff and local expertise that can help you achieve the best sale price possible. Contact us by calling 02920 668585, e-mail enquiries@cpshomes.co.uk or by popping into one of our three branches.
