Dropping your asking price when your house won’t sell

If your property has been on the market for quite some time, yet you’re still waiting for someone to make an offer, you may find yourself having to drop the asking price. It’s undesirable, but it is something many homeowners consider at one point. However, is dropping your asking price the key to selling your home quickly?

Though it is true that reducing the asking price can boost buyer interest, it may not be the answer depending on your circumstances. In fact, it can even harm the chances of your house selling effectively. So, if you are considering dropping the asking price of your property, keep reading on to make sure you do it right.

Don’t drop the price by less than 10 per cent

If you don’t do this, it won’t make any difference. Buyers will often look at homes 10 per cent either side of their budget. Therefore, if you want to be noticed by a new set of buyers, you need to drop your price by a minimum of that amount.

Ask your agent why you should reduce your asking price

You originally turned to a professional to perform extensive research to bring your property its value. But what’s changed? It helps to speak with your agent to gain an understanding of why the property is still yet to sell. In many cases, it is due to a change in demand for your kind of property, but in some cases, you could be dealing with an estate agent that isn’t quite up to scratch.

Don’t keep making small drops in price

A price drop can encourage potential buyers to feel suspicious and may wonder what’s wrong with it. As a result, they may not wish to risk buying a property that seems to be falling in value. And the more you do it, the worse it can look, so be sure to only drop the price once.

Ask your agent the right questions before dropping the price

If you feel pressured by your agent to drop the asking price, or you are reaching a specific deadline and cannot afford to drop it, ask your agent for advice. What else could be done to ensure you secure a sale? Have a review with them and look at what could be improved.

Don’t give your buyers an excuse to make a low offer

We previously spoke about making your home presentable to potential buyers. Each room should be polished and attractive, ensuring buyers see your property as a place fit for living. Home staging can add a lot to your asking price and even the smallest of changes can make a huge difference.

Negotiate within reason

On average, you can expect to receive around 95 per cent of your asking price, with 5 per cent lost in buyer negotiations. This will depend on other factors such as how fast your local market is moving, the confidence in the housing market while you sell, and more.

Analyse your price per square foot

Analysing your value per square foot is much more accurate than other methods. If your agent is yet to do this for you, make a spreadsheet of the other properties for sale and calculate the price per square foot each and compare it to yours.

Know your property’s value with Joules

When you are still waiting for your home to sell and you’re wondering whether the price is the problem, use the above guide to help you. If you find that your property could have been incorrectly valued due to a poor estate agent, you may need to rethink who to work with. By turning to Joules Estate Agents for your property selling needs, you can relax. We know the Heaton’s like the back of our hands, which means we know your property’s worth. Get in touch to find out more.