Your house has been on the market for a while and despite your valuation and the work you have put in to get it ready for sale, no one seems interested. But, how do you know whether you should reduce the price, and how long should you wait before slashing it? 

It is important to consider factors such as market conditions, local demand, and the specific circumstances of your property, which can all have an impact on your ability to sell.

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What factors affect your sale price?

Market conditions 

 Keep an eye on the current property market in your area. If the market is slow, with a surplus of properties and few buyers, you might need to consider a price reduction to make your property more competitive. Economic and political instability make it more challenging to sell, and the property market will respond accordingly.  

Changes in the local or national economy can impact the real estate market. If there are economic downturns or uncertainties, it might be necessary to adjust your pricing strategy. 

Cutting your asking price in times of instability may be helpful, but it is worth waiting a while to see if things make a quick shift. Equally, interest rates which can change regularly will have an impact on buyers ability to meet your asking price. Lower interest rates may attract more buyers, increasing demand for homes. Conversely, higher interest rates could reduce the number of potential buyers. 

Comparable sales 

It is important to look at recent sales of similar properties in your area because if comparable homes are selling at lower prices, it may be an indicator that your asking price is too high, and selling may require a price drop. 

Feedback from viewings 

One of the best indicators that it could be time to lower your asking price is if you've had viewings but no offers or consistent feedback about the property being overpriced. Buyers know what they are willing to spend, and while one comment on price shouldn’t dictate any change, if you are hearing time and again that you are asking for too much, it could be time to cut that price. 

If your property has been on the market for a while with minimal interest or if you've received feedback suggesting that the price is a deterrent, consider adjusting price - it may be time. 

If you're not ready to make a substantial price reduction, you should consider being open to negotiation. Buyers may be more willing to engage if they see some flexibility in the asking price and know that you are not being too rigid in your pricing.

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Time on the market 

The longer your property stays on the market without much interest, the more likely it is that the price could be a factor, so if things aren’t moving at the pace you had hoped, now could be the time to reassess. 

The longer your property stays on the market without offers, the more likely it is that a price reduction is necessary. Buyers may be sceptical of a property that has been listed for a long time. 

Seasons 

Property market activity can vary seasonally so if you've had your property listed during a slow season and haven't seen much interest, you might want to reassess the price when entering a busier season. It could all just be about timing. 

You should work closely with a local estate agent who can provide insights into the current market conditions and help you determine an appropriate pricing strategy. It’s important to regularly review the performance of your listing and be open to adjusting the price if needed. Keep in mind that pricing is a balance between attracting potential buyers and maximizing the value of your property and spring and summer are consistently the best times to sell in order to do this. 

The weather is typically better between April and September and properties often look more appealing with blooming gardens and better lighting. Families with children may also prefer to move during the summer to minimize disruption to the school year, so consider this if you are struggling to get interest in your property. 

Your agent’s expertise 

You have an estate agent for a reason, don’t ignore sage, experienced advice from them. They can provide insights into market trends, assess your property's unique features, and help you determine a competitive and realistic asking price. 

They have in-depth knowledge of the local property market and they can provide valuable insights into current market conditions, property values, and trends. This expertise will help you set and stick to an appropriate and competitive asking price for their property. They will also have relevant contacts to help maximize your chances of selling at the price you want. Estate agents often have a wide network of contacts, including other property professionals, potential buyers, and industry professionals. This network can be beneficial in finding qualified buyers so you don’t need to drop the price and promote the property effectively without having to reduce the price. 

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Consider a percentage reduction 

Some sellers choose to reduce the price by a certain percentage (e.g., 5% or 10%) to make it more attractive to potential buyers who may see the percentage and see the great deal they are getting. This approach can be effective, especially if the initial asking price is significantly above market value, meaning you are still getting a decent price for the property. 

Renovations 

If you are at the point where you are considering slashing the price, maybe think instead how you could invest a little money to make your property worth the price you are selling for now. You will still lose a little cash, but you may be able to change enough, say a bathroom refit, or new cabinets in the kitchen, that the place will sell faster.  

Make sure any changes are generic, and do not add too much personality to the place - it is not going to stay yours. Work out what your time and effort is worth if you are wanting to sell an already price reduced house. 

How to sell with reduced house price

We know how frustrating it can be when selling your home feels like pushing water up hill. You have thought about all of the above and despite taking cash off the asking price, you just can’t seem to get the place sold. Your house still isn’t selling after a price reduction. 

That’s where we can help. The Property Buying Company is a cash buyer, and while we are unable to offer you 100% market value for your home, we can offer a service that sells your home fast, free, and securely, something those looking to make a fast sale and move on may want to utilise. We want to help take away the stress that selling your home can bring, simplifying the process and allowing you to relax - so you can get some cash in your pocket.  

Alexandra Ventress

Alexandra is a Content Producer who enjoys writing articles, finding out about the property market, keeping you up to date with the latest trends.

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