Your agent is asking you to reduce the price of your property - what should you do?
All estate agents have a toolbox of options for marketing a property for sale.
But what happens when they have tried everything and run out of ideas? As the interest levels in your property begin to dwindle, the agent may utter those dreaded words. "I think it is time to reduce the price."
All estate agents have a toolbox of options for marketing a property for sale. They have ideas for advertising and techniques to entice a potential buyer to come and view. Photography and floorplans, video tours and sometimes even open-day strategies.
But what happens when they have tried everything and run out of ideas?
When selling your home in the traditional way, you will see the most interest from potential buyers within the first 4 weeks. After this time, the interest will start to reduce week on week. This happens because the property websites are promoting newer instructions, and potential buyers searching at this time have already seen your property. They will have already decided whether they are interested and have booked a viewing. Or they will have decided they are not interested and will simply move on to view something else.
As these interest levels in your property begin to dwindle, the agent may utter those dreaded words. "I think it is time to reduce the price."
But how do you, as a seller, know that it's time to reduce the price? Surely this should only be considered as an absolute last resort. After all, a price reduction is literally money taken directly from your pocket.
A price reduction is an almost guaranteed way to encourage more viewings and boost those interest levels. But, crucially, a price reduction needs to be substantial enough to have an impact; otherwise, you might as well not even bother.
You need to move your property into a price bracket within the parameters of online searches. This will allow the algorithm to see your property as a new listing within this new price bracket and show the property to a new batch of potential buyers.
At the lower end of the market, this could be £5,000 or maybe £10,000. But as you move up the market to the premium properties and the higher prices, these brackets spread considerably. If you are on the market for £1,500,000, you would have to reduce the price by £250,000 to reach the next bracket. And if you are marketed above the £ 2,000,000 price range, this increases to £500,000, meaning that a price reduction could cost you up to £500,000!
So rather than blindly reducing your property price by half a million pounds, costing you thousands. Or worse, reducing by a more palatable number but proving entirely ineffective, doesn't it make sense to double-check that you've tried everything else first?
But how can you be sure that you've tried everything before dropping the price? And what if there are other options? Things that you haven't tried? Perhaps something that your current estate agent isn't even aware of?
Unfortunately, if an estate agent doesn't have access to all the available tools, a price reduction can sometimes be the first thing they try. They are simply not aware that there are other options available that you can use to double-check your actual property value before slashing the price willy-nilly. Sadly, this can have catastrophic results for you as a seller.
By Design uses exclusive innovative software and harnesses artificial intelligence and a fully connected database of buyers to ensure that all possible avenues for your home sale have been explored. This will give you a greater insight into the actual value of your property in the current market, resulting in a straightforward sale, effective marketing and accuracy around the price you have sold your home for.
Of course, it could be that your property is simply too highly-priced in the current market, and the price reduction is the right thing to do. But only a By Design agent has access to the technology to find this out for you.
Using our connected database, a revolutionary concept in the property industry, we can pinpoint the most likely buyer for your property, wherever they are in the country. This hot buyer will be the buyer that will most likely pay you the highest price for your property.
It's not a guarantee that you won't need to reduce the price of your property, but doesn't it sound better to double-check first? Finding the perfect buyer and marketing the property directly to them instead of shaving huge chunks off the price of your house until someone else decides they want to buy it. At least this way, you will know that you have genuinely exhausted all available options to sell your home and maximise its value. The price you ultimately achieve for the property is the true value and the most you could have sold it for.
To learn more about this revolutionary, new way of marketing homes for sale, get in touch with your local By Design agent today.
