When Is The Right Time To Reduce The Price Of Your Property?

Every homeowner must set an asking price when listing their home on the market, but what happens when you don't receive any offers?  Just as it's important to know when it's time to sell, it's important to recognise the right time to reduce the price.

Supply & Demand

If a lot of homes are currently listed on the market or your home is overpriced, it may be time to consider a price reduction if you hope to stay competitive.  If five different stores sold your favourite furniture, what would motivate you to buy from one over the others?  If you are like most, the cost would be a leading factor.  The same is true with home buyers, who are looking to get the best value for their money.

Hurry Up & Wait

If your home has been listed on the market for what is considered to be a lengthy time for your area, it may be time to consider a price reduction.  This is especially true if you are in a hurry to sell, which may be the case if you are planning to purchase another house upon selling yours.  In some cases, a homeowner will make an offer on another house and that offer will be contingent upon selling their current home.  When this happens, the homeowner is likely to be in a hurry to sell so that they can honour the terms of their new agreement before it expires.  Selling a property can often be a waiting game, but sometimes it may be necessary to hurry up the process, through a price reduction, if you need to complete the sale.

Market Value Fluctuations

We all know how the market fluctuates.  If you own property you already know values can go up one year and go down the next.  If your house is currently listed and the property values have fallen, you may want to consider reducing the price in order to remain in the running with potential home buyers.  If your house is priced far above market value, most mortgage institutions would refuse to approve a loan for your asking price.  Getting a realistic valuation would be the best way to know how much your home is worth.

Recommendations

If you've already appointed an estate agent you will obviously trust him/her to guide you through the process of selling your home.  If your estate agent suggests a price reduction, it may be in your best interest to consider it.  Nobody knows the business like a professional working on a daily basis in the property market.  They know what buyers want and, in most cases, what they are willing to pay.  If you've trusted an estate agent enough to appoint them, trust them enough to value their opinion.  If not then approach an estate agent who specialises in the area where your property is located and get a second opinion on the advice.

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