A headline might have caught your eye recently about the number of property sellers having to drop their asking price. Property portal Zoopla said over 30% of homes on its website had recently been subject to a price reduction, averaging £25,257.
That means for almost a third of sellers the gap between their asking price and their eventual sold price is widening.
So why do sellers have to drop prices in a market where there are still more buyers than properties for sale?
There are various reasons, outlined below:-
- The property is priced too high from the start, at an inflated level compared to similar local examples
- Buyers are of the opinion that all homes for sale are overpriced and therefore refuse to pay any asking price
- Seasonal factors create a sluggish selling market, with little interest or movement
- Wider economical and financial conditions make buyers cautious of spending too much money
As North West London estate agents, London Residential believes pricing accurately and realistically from the outset is the best way to avoid dropping your asking price. Our advice for avoiding the drop is as follows:-
Realise that every property is unique and market conditions change. Your home's value might not be the same as your neighbour's, which sold last year.
Selling a property is not always about making the biggest profit possible, especially at the expense of a dependable buyer.
A quick sale needs a different pricing strategy to a sale where the seller will only accept a very high offer.
Take expert advice when agreeing an asking price. Local estate agents on the ground with knowledge and experience are best placed to assess demand and offer a valuation that will attract interest.
Pricing too high may leave your property languishing on the market too long, which could send out a warning sign that there's something wrong with your property.
Consecutively dropping your property price to attract interest will also arouse suspicion that your property isn't selling for a specific reason.
Lawrence Hall, a spokesman for Zoopla, said that the percentage of homes with reduced prices is “not as high as one might have predicted given the EU referendum outcome”.