Is it time to reduce your asking price?
Selling your home can be an emotional and sometimes stressful journey. One of the trickiest decisions you’ll face is whether – and when – to reduce your asking price. Read on for our guide.
At By Design, we know that pricing your home right is crucial to achieving a successful sale. Here’s our guide to recognising the signs it might be time for a price reduction, how to approach it, and how much to consider lowering.
Recognising the signs: When should you reduce your price?
Several clear indicators suggest it might be time to reconsider your asking price:
- Lack of interest: If your property has been on the market for several weeks with little to no viewings or offers, it may be priced too high for current market conditions.
- Cheaper comparable properties: If similar homes in your area are selling for less, buyers may see yours as overpriced.
- Changing market conditions: Shifts in the property market, such as increased interest rates or economic downturns, can lower demand and make a price adjustment necessary.
- Consistent negative feedback: If multiple viewers or potential buyers comment that the price is too high, it’s worth taking seriously.
- You’re in a hurry to sell: If you need to move quickly for personal or financial reasons, a price reduction can help speed up the process.
- Stale listing: The longer your home sits unsold, the more buyers may wonder if there’s a hidden issue, making a price cut more appealing.
Before you drop the price
Before making any changes, consider these steps:
- Consult your estate agent: Ask for honest feedback and a fresh market appraisal. Sometimes, a few small improvements or better marketing can make a difference.
- Review your marketing: Ensure your listing has high-quality photos, a floorplan, and is well-presented online. Sometimes, presentation is the issue rather than price.
- Consider timing: If you’re not in a rush, you might choose to wait for a more active selling season, such as spring or summer.
How much should you reduce by?
The amount to reduce your price requires careful thought:
- Small, strategic reductions: Most sellers start with a reduction of less than 5%. A cut of around 2% is often enough to trigger renewed interest and ensure your property appears in fresh alerts on major portals.
- Significant reductions: If your home has been on the market for over three months, average reductions are around 5%, with some sellers dropping by 10% if necessary to secure a sale.
- Psychological price points: Consider lowering the price just below a major threshold (for example, from £405,000 to £399,950) to appear in more buyer searches and attract new interest.
How to approach a price reduction
- Act promptly: If you’ve had little response within the first 30 days, it’s time to have a frank discussion with your agent.
- Don’t overdo it: Too many reductions can make buyers suspicious. Experts recommend no more than three price drops during your listing period.
- Communicate clearly: Work with your agent to update all marketing materials and communicate the new price to interested parties and those who have previously viewed your home.
Final thoughts
Reducing your asking price isn’t a failure – it’s a strategic move in a changing market. By staying informed, consulting your agent, and acting decisively, you can attract new buyers and move forward with your plans.
If you’re unsure about your next steps, the By Design team is always here to help with honest advice and local expertise.
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