When should you drop your selling price?
Category General News
As a home seller, you want your property to sell quickly and profitably. When the offers don't start rolling in (if at all), there may be a need to adjust your pricing. The amount you ask for is a major factor when it comes to the success of your sale. And while many assume a price cut is primarily out of desperation, this is not always the case. Here are some scenarios where a reduction can be a smart move to improve your property's chances on the market.
Your price is too high
If you've priced your home above a realistic market value, you will find your property remaining on the market for a lengthy period. Many buyers selling without an experienced property practitioner make this mistake to test the market. However, this can turn off potential buyers from the start.
You're not receiving viewings/offers
When you're not getting any bites, your property price may well be the culprit. Dropping your asking price strategically is a good way to reinvigorate interest in your home. Before you do, ensure the lack of interest isn't because of curb appeal, poor marketing, or not having enough showings. Again, a good property professional can eliminate these potential stumbling blocks by advising you accordingly and putting together a solid plan for your property's sale.
You're getting lowball offers
People may be showing interest in your listing, making appointments to view your property, and even making offers. However, when the offers are way below your asking price, it could be a sign your property is priced too high. Making a small adjustment could be the trick to get your home off the market. If you do need a quick sale, you can consider the offer you receive as an opening bid and negotiate with the buyer to land a deal that suits the both of you. An insightful practitioner can help negotiate on your behalf, ensuring you gain a favourable outcome.
You find the property market has shifted
If the market switches from a seller's market to a buyer's market, you may lose the edge needed to sell your property. There could be an influx of similar property stock in your area and fewer buyers meaning you may have to lower your price. Other factors include a rise in interest rates and reduced home loan approval rates that can make it more challenging for buyers that may be interested in your property.
Your competition is outpricing you
Have a look at properties in your area that are also on the market. If you find they are significantly lower, you have priced your home too high. Buyers today have a lot more information available and are savvy when it comes to finding a good deal. If they are looking in your area, they will opt for properties that give them good value for their money.
You need an urgent sale
If you've transferred jobs, are expecting your family to grow, or are financially strained, you might need a quick sale. By lowering your asking price, you can generate interest in your home, especially if it is lower than comparable properties in your area. This could potentially be a profitable move if it sparks a bidding war between multiple buyers interested in acquiring your property.
Be strategic with your price drop
If you decide to lower your asking price, it's best to do it relatively quickly. Within two weeks of listing your property is generally a good move. A swift correction can prevent your home from sitting on the market and raising red flags for potential buyers.
As a general rule, aim for no more than one price reduction. Several price cuts can work against you by turning off potential buyers. When repricing, a sizable reduction (5-10%) will help you grab attention. Working with a property practitioner with local area expertise can help you price right based on current market conditions.
Get guidance on property pricing
Kellaprince Properties is the go-to real estate agency for sellers in Nelspruit (Mbombela) and surrounding areas. We can assist with an accurate property valuation, marketing, showings, negotiations, and paperwork needed for a successful sale. List your property here or contact our team to get started.
Author: Kellaprince Properties