Should you be thinking about reducing the price of your home?
Selling your home can be a challenging process, especially when your property has been on the market for a while without attracting the right buyer. If you find yourself in this situation, you might be wondering whether it's time to consider reducing your asking price. Read on for more information.
Whether you have found your dream home and are desperate to move, or you aren’t sure what your next step on the property ladder might be, it can be frustrating when your home sits on the market for a while with no signs of a buyer. Here we offer guidance to help you navigate how reduce the price of your home and ensure you achieve the best possible outcome for your property sale.
Timing is everything
The general rule of thumb is to consider a price reduction if your property hasn't received any significant interest or viewings within 4-6 weeks of being on the market. However, it's essential to take into account factors such as the current market conditions and the time of year.
For instance, the autumn and winter months typically see a quieter property market, while summer tends to be more active. You might want to hold off on reducing your price during these slower periods and instead wait for the market to pick up.
How much to reduce?
When it comes to the amount of reduction, there are a few guidelines to consider:
- For properties valued under £250,000, a reduction of at least £5,000 is generally recommended.
- For higher-value properties, you might need to consider a more substantial reduction of around £10,000 or more.
- Some experts suggest a reduction of 1-3% for a small adjustment, or 5-10% for a more significant change.
It's worth noting that reducing your price by 2% or more can increase your property's visibility on popular property portals, potentially attracting a wider range of buyers.
The importance of proper pricing
Getting the price right from the start is crucial. Overpricing your property can lead to it becoming stagnant on the market, which may ultimately result in a lower final sale price. In fact, about one in five properties that have been on the market for three months or more end up with an asking price at least 10% lower than the initial one.
Consider the wider market
Before making any decisions, it's essential to look at the bigger picture. Are other similar properties in your area selling well? If so, a small reduction of 1-3% might be sufficient to generate more interest. However, if your property is priced significantly higher than comparable homes in the area, you may need to consider a more substantial reduction.
Consult your estate agent
Your estate agent is your best resource when it comes to making pricing decisions. They can provide valuable insights into the local market and advise on the most appropriate strategy for your property. Don't hesitate to have a frank discussion with them about how long they expect it might take to find a buyer and what price might be suitable to secure a sale within three months.
Timing your reduction
Interestingly, sellers are typically less inclined to reduce asking prices in November and December, despite lower demand during these months. However, with the current market experiencing some price falls, buyers are scrutinising prices more closely than ever.
Remember, reducing your asking price doesn't mean you've failed – it's a normal part of the selling process for many properties. By being responsive to the market and working closely with your estate agent, you can increase your chances of achieving a successful sale at a price that works for both you and your buyer.
If you would like to discuss how best to price your home to secure a successful sale, the team at By Design can help. Please do get in contact today.
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