Selling a property isn’t an exact science and each sale, purchaser and set of circumstances is different. What is the same, however, is the desire to sell a property for as much as possible – especially if an onwards purchase, retirement, lifestyle change or debt settlement is reliant on achieving a set sales figure.
There are a number of reasons why a seller may have to reduce their asking price, however, and knowing what these are can help prevent this happening to you. Reasons can include:-
Being on the market for too long: if a home remains unsold for an extended length of time, this can be because it is overvalued – especially if similar properties in the local area are selling for less.
Because the buyer has asked them to: negotiating the asking price is part and parcel of selling a property and many purchasers expect to successfully get the owner to reduce what they’re willing to accept to secure the deal. Sometimes a buyer who is also selling will have had to reduce the asking price on their home, and this can have a knock on effect.
Unfavourable survey results: even if the original offer matches the asking price, a survey may show a flaw that’s expensive to rectify – such as damp or subsidence. In this case, it’s quite usual for the buyer to ask the seller to accept a lower offer so they can cover the cost of any repairs once they have moved in.
How to avoid dropping your asking price
- Get the most realistic and attractive valuation possible – if you opt for a very ambitious asking price, you may deter buyers and leave yourself with no other option than to reduce that figure later on. Beware, some purchasers may become suspicious if a property for sale is repeatedly reduced in price as it may suggest there’s something wrong with the home.
- Ask for your property to be listed ‘offers over’ – there are a number of ways of listing a property’s asking price and if a single figure is listed, it’s fair to say that figure is up for negotiation. If you’d like to minimize haggling over the price paid, ask about listing your property as ‘offers over’ or OIEO (Offers In Excess Of) and we can discuss the minimum amount you need or are willing to accept. We suggest you avoid a wide price range or OIRO (Offers In the Region Of) as this invites people to make a lower, more speculative offer.
- Ensure your property is in tip top condition – as mentioned, a survey may highlight structural issues within your property that will either cause the buyer to pull out of the purchase or prompt them to negotiate a lower offer. You can avoid this by identifying your home’s weak spots and repairing these before you go on the market. As well as rectifying any major issues, make sure any DIY is up-to-date, that all appliances are in working order and your boiler is serviced, as this will give your buyer fewer reasons to bargain.
- Try a new marketing approach – this can be as subtle as a new set of photographs after redecoration or decluttering, or a more drastic measure, such as moving to a different estate agent. If you’re reading this and we’re not currently marketing your home, get in touch. We can provide you with a second opinion on your current marketing package and offer advice on your asking price.
- Provide value for money – justifying your asking price is another way of appeasing a potential buyer. If you really don’t want to lose an interested party and can’t lower your offer, you may discuss leaving furniture, curtains and free standing appliances to improve the value-for-money aspect of your sale.
Are there any upsides of dropping the asking price?
Yes! You will immediately appeal to a new set of buyers with a smaller budget. If your home can be reduced to under £500,000, it will also be available to a buyer, stamp duty free until 31st March 2021 – purchasers are increasingly setting their budget and search criteria to only include homes for sale below this price threshold.
The smart way to reduce your asking price
Contact us about reducing your asking price. We’ll make sure any reduction drops you into a new band on the property portals, so your home reaches a whole new audience who may not have seen your property online before.
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