Should I Drop the Asking Price on My Home?

I am sure many of you have been or know someone who has been in this scenario. Your property has been on the market for 4 to 6 weeks and viewings are starting to slow down. The viewings to date haven’t yielded any offers and you are starting to get a little anxious. What should you do?

At this point, your agent will often suggest to reduce the asking price of your home. If you are looking for a quick sale, you may think that this is the only option available. However, this is a decision that should never be taken lightly. Think long and hard about the benefits of this and whether it will have an impact any potential sale.

This strategy may have the desired effect, but at the other end, it could mean that you are receiving offers way below what you were hoping for. If you reduce the asking price of your home, what goes through the mind of a buyer?

1) What’s Wrong?

A price reduction can lead to a buyer asking the question ‘So, what’s wrong?’. There is the possibility that it leads to greater suspicion that there must be something wrong with the home for it to be reduced or be listed at such a low price.

2) Low Price Means Poor Quality

Every buyer has a budget in mind and normally they wish to spend that budget. A realistic yet optimistic price will inspire greater confidence, will push those at the top end of their budget to want a property more. In addition, buyers a now very savvy when it comes to property prices in their area. They will have a rough inkling of how much property their budget gets. If this perception is not met, it can lead to greater suspicion.

3) Desperation

Reducing the asking price of your home can be perceived as an act of desperation. A buyer can seize on this meaning potentially lower offers. You can have some buyers putting in offers just to try their luck. This certainly won’t help you get a fair asking price offer.

There are other options that you can try before reducing the asking price:

1) Rotate Your Pictures

You may have had the front of your house as the main picture on the property portals. If you changed this to the kitchen for example, it may ignite fresh interest as someone who wasn’t initially drawn to the front of the house may really like the look of your kitchen. This may spark new interest in viewings.

2) Featured Listings

Adding your property to the featured listings will mean more eye balls on your home, more eye balls means potentially more viewings and this can lead to a better chance of receiving offers. By doing this, you are in effect putting your property at the top of page one on property portals like Rightmove or Zoopla.

Many properties need to be reduced in asking price, it is very common in the market. We are not saying for you not to do it, but make sure you have assessed all the options and weighed up the pros and cons before doing so.

Hope this help, happy selling!