Should I lower my asking price to increase my chances of selling?
Right now, homes that are stuck on the market are seeing the greatest price reductions. Do you know what to do if you're thinking about selling yours?
There is a trend right now of reducing asking prices to match price-sensitive buyers, but don't do it too soon.
A seller's market has transitioned into a buyers' market over the past 18 months.
To match buyers' expectations and lower budgets, some sellers had to reduce their asking prices.
The result was a higher than usual number of asking price reductions, as buyers and agents worked together to attract more buyers.
Price reductions - a means of selling
It can be challenging to price a home, especially when it has unique features or is larger than the rest of the properties on the market.
It is also important to consider the motivations and reasons for a seller's decision to move, how quickly and what budget they need to do so.
When it comes to how long it takes to negotiate a sale, the asking price can have an impact on whether there is sufficient demand for the property to get viewings and offers.
The average number of days until a sale is agreed is 34 days, but three in four properties reach the sale agreement stage within 90 days of going on the market.
You should speak to your agent if you do not receive an offer within 30 days but remain very eager to move despite not receiving an offer.
How much are house prices being reduced in October 2023?
A recent analysis by Zoopla compares asking price reductions with time on market over the last month.
It also examined properties with sales agreements and whether they had lowered their asking prices.
Only a quarter of sellers reduce the asking price in the first 90 days after listing a home.
However, the longer a home stays on the market and remains unsold, the more sellers who want to move will cut their asking prices.
Four out of ten homes on the market have been listed for 90 days or more. The asking price of 61% of these homes has been lowered.
Six out of ten sellers initially reduced their prices by less than 5%.
Over time, chipping prices could add up to significant savings.
1 in 5 properties on the market for more than 3 months end up with an asking price at least 10% lower than the original.
However, sellers who've listed a home for 3 months are reducing their prices by 5.1% on average.
According to these insights, sellers who have been unable to attract buyers commonly re-price their properties.
Sellers should consider talking to multiple agents and getting several appraisals before listing their home.
What are the best ways to sell my home quickly?
In addition to discussing the asking price, it's important to discuss how long the agent thinks it may take to find a buyer and what price might be appropriate to close within three months.
Could the end of the year be a good time to lower the asking price?
In November and December, sellers are less likely to lower asking prices despite lower demand and fewer sales.
As house prices fall, buyers are scrutinizing prices more than before.
However, cutting prices now may not be the best course of action.
Sellers should first consider how quickly they need to secure an offer.
In the final months of the year, the market is weaker, but after Christmas, buyers return.
Those who aren't in a hurry to sell may be better off waiting until January.
You can decide what to do next by re-convening with your agent now.
Do I need to reduce my house price in order to sell it?
While demand has weakened and buyers are more price-sensitive, two-thirds of sales in September were for homes that did not have their asking prices reduced. Without reducing the price, it would have been possible to achieve a sale.
What you need to know about pricing your property
36% of properties marked as sold subject to a contract have reduced their asking prices today.
All asking prices are being adjusted.
You will be affected by repricing not only if you are downsizing or upgrading but also if you are in the market for a new home.
Since last year, mortgage-buyers' budgets have shrunk as a result of value-consciousness.
For serious sellers looking for an offer ahead of Christmas, our advice is to speak with an agent and ensure your property is priced appropriately.
If you're looking for a survey or valuation on your property, speak to our friendly team at Carpenter Surveyors who will be happy to supply a quotation for you to consider.