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Things to consider before reducing your asking price

Things to consider before reducing your asking price

It’s a nerving and exciting time; your property is officially on the market!

Your home is in excellent condition, it is being presented to the market with immaculate photography, beautifully written descriptions of all the features, great marketing and advertising, yet you are not getting any enquiries! If this is the case, then it may be time to adjust your price.


Conversations between a seller and a real estate agent who suggests lowering the sales price can be equally fraught with emotion.

After all, as an owner, you have spent years paying for a house; your blood, sweat, tears and money have gone into renovations and maintenance. The house is no longer a house but a home. Throw in all those memories of family, friends, pets and good times, suggesting to an owner that a house may be overpriced is an emotional minefield!


If you are faced with this decision, here are some suggestions of what to consider when deciding on lowering your asking price:


Attempt to see things from the buyers’ perspective

Today’s buyers are savvy, with unprecedented purchasing tools at their fingertips. Via the internet, buyers can quickly evaluate a market, compare properties and gather other critical information that several years ago was only available to real estate professionals.

To make the best decisions when selling a property, sellers need to overcome their emotional attachment and attempt to understand buyers.


Don’t get into the blame game

The first response of many property owners presented with the suggestion of lowering their price to sell, is to blame the real estate agent, but remember that a real estate agent also has an interest in selling your house.

The best result will come if you determine to work with your agent, and move forward based on current information available.


Understand the market

Understanding how the market is now, is the key to pricing stratergy, and that’s where working with your real estate agent can enhance your chance of striking the right balance. Your agent can give you invaluable information, which is not available to the general public, on which to base a rational decision.


Take a look at adding value rather than reducing price

One option to consider before reducing your price is the possibility of increasing the value of the property through improvements. There may be renovations that can be done which will increase buyer interest. If these renovations can be achieved quickly, and at a price less than the proposed price reduction, then they could be considered as an alternative.


Whatever you do, do it quickly and do it once

The statistics are compelling. Fresh listings receive high levels of attention, but after about two/three weeks, buyers start to see a property as stale and lose interest. Over-priced properties take longer to sell and do not attract optimum number of potential buyers. The longer properties sit on the market the lower price they achieve.


If you are considering selling a property soon, take the time to do your own research, and to talk with a trusted real estate agent, before going to market so that you start with a price that will take advantage of those first two-three weeks of intense interest.

If you have a house currently on the market, and enquiries have reduced to a trickle, seek advice and make a decision quickly.


- Mark Forde