According to recent figures, 38% of the properties sold this year had at least one price reduction before selling. That equates to 388,000 price reductions so far.
When you’re struggling to sell a property, a reduced asking price is often the first thing suggested by your estate agent. But what happens if you’ve already tried a price reduction and you’re still struggling to sell? This guide will help you come up with a plan for the best way to move forward and secure a buyer for your property.
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The truth is that price reductions are often the quickest and easiest thing to try when you’re struggling to sell a property. Correctly pricing a property is part science and part art. You can look at current demand and what similar properties have sold for recently to get an indication of how much a property might be worth, but the market can change quickly and there will always be an element of testing the market, trial and correction.
Reducing your asking price is logically the first place to start if you’re struggling to sell.
It might be that the property has been priced a little over-optimistically. Perhaps buyer demand has cooled and therefore properties need to be priced more keenly. It might be that there is a lot of competition and price is an easy way to make your property the most attractive option. Whatever the stumbling block, a price reduction can be a great way to reach a new or wider target audience.
If you’ve reduced your asking price but your property’s still not selling, you may be feeling very frustrated.
Unfortunately, you’re not the only one struggling.
There are several external factors that are currently putting negative pressure on the property market. Stamp duty changes, interest rates not falling as quickly as hoped, and stubborn inflation are all making would-be buyers cautious. This has created an imbalance, with many more people wanting to sell than wanting to buy.
It’s important to be realistic about how long it takes to sell a property in the current market. During the post-Covid property market boom, we all got used to properties selling in a week or two. That’s simply not realistic in the current market.
Recent data suggests that properties currently stay on the market for an average of 173 days – that’s almost 6 months!
The good news is that there are lots of different things you can try that can boost your chances of selling. The key is to work out which one is the best next step for your individual circumstances.
You’ve already reduced your asking price, but there may be other steps you need to consider around property pricing.
Unfortunately, one price reduction isn’t always enough to get your property sold. The property market can change quickly, so if your property was initially overpriced, your price reduction may have been too little, too late.
We would recommend that you ask your estate agent to do a comprehensive price review. This should take into account:
Much of this information is available online, which means it’s also something you can do yourself. Does what you find out fit with your current pricing?
Once you’ve done a price review and feel as confident as you can be in your property’s value, there are some tactics you can try to get more interest in your property.
If you think your property is worth around £300,000, try pricing it at £299,995 instead. Psychologically, buyers will feel better about a property that starts with a ‘2’ than a ‘3’.
If there’s not a huge amount of evidence to help you ascertain the value of your property, an ‘offers over’ approach can be a good move. This can help to attract a large amount of interest and then lets the market decide how much your property is worth. If there are lots of interested parties, they will naturally push the price higher. If there’s not very much interest and you only get low offers near the ‘offers over’ asking price, you’ll know that’s where your property’s value currently lies. Ultimately, a property is only ‘worth’ what someone is willing to pay for it in the current market.
Are you struggling to get viewings or offers?
If you’re not having many viewings and a price reduction hasn’t had a big impact, it’s important to look at how you’re reaching your target audience and the information you’re providing.
Try to take an objective look at your property brochure and online listings. Are the photographs appealing? Does the property description highlight your property’s main selling points? Do you include a floorplan? All these things will help to attract potential buyers.
It’s also important to look at how your property is being marketed. In a cooler, more challenging property market, estate agents will need to be a lot more proactive in marketing properties. Gone are the days of just listing properties on Rightmove and waiting for the buyers to roll in.
Ensure your agent is using as many marketing channels as possible, including:
If a price reduction has resulted in more viewings but not more offers, it’s time to consider whether there’s something about the property that is putting buyers off.
Your estate agent should be gathering feedback after every property viewing. This feedback will help to paint a picture of what buyers like and dislike about your property. You can then adapt your marketing strategy accordingly.
If you’re struggling to get viewings, you can still carry out a property review by asking your estate agent for their honest thoughts and by getting friends and family members involved. You can invite friends and family around and ask them to walk through the house as if they’re doing a property viewing. Ask them to narrate as they go, pointing out anything that would put them off or they think you could improve.
It’s difficult for us to view our own homes objectively, so asking friends and family to help out in this ay can give you a real advantage.
There may be things that you’re already aware. Perhaps a loose roof tile, some scuffed paint or scruffy carpet have been sat on your ‘to do’ list. If there are any jobs you’ve been putting off, now’s the time to do them! Make sure you get any photographs updated if your improvements would have an impact.
With so many properties to choose from, buyers are being picky. Make sure you address anything that might give potential buyers cause for concern.
In the current market, with so much uncertainty and so many properties to choose from, buyers are playing it safe. Three-bedroom, semi-detached properties remain the property type most in demand.
If you have an unusual or historic property, it is more likely to sit on the market longer.
Whilst this is simply a reflection of the current climate and buyers’ appetite for risk, there are things you can do to improve your chances of finding a buyer.
Buyers are nervous about owning older or more unusual properties because they are apprehensive of the unknown. Your challenge, in order to attract a buyer, is to make people fall in love with your property and alleviate any concerns they may have. If your property is historic or unusual, you’re going to need to find a buyer who’s willing to let their heart rule their head. By providing them with reassuring information upfront, your aim is to satisfy their cognitive concerns enough that they’re open to falling in love with your home.
Information you provide might include:
You’ll also want to ensure that your property is presented in a way that highlights its most appealing features. Think about your furniture layout and choice of interior colours etc. You want would-be buyers to imagine themselves living in your property, so it’s important to make it look as inviting as possible. This may mean having a declutter or putting some of your belongings in storage temporarily.
If your property hasn’t sold with a reduced asking price, it’s important to refer back to your estate agent and consider the best way to move forward.
If your reduced asking price hasn’t resulting in more interest, it’s important to ask you estate agent for their thoughts on the best way forward. Your estate agent should be advising you on sales strategy and proactively marketing your property, not just listing your property online and waiting for buyers to appear. Ask them to be open and honest with their feedback and advice. Some home truths about your property’s value or how it’s presented might be difficult to take, but it’s best to have a realistic understanding of where your property sits in the market so that you can take any necessary steps. Overpricing your property to avoid upsetting you won’t do you any favours in the long term.
Having the right estate agent for your area and property can have a big impact on how quickly your property sells. Your ideal estate agent will have extensive local market knowledge and recent experience of selling comparable properties. This will mean they have a more accurate idea of property value and appropriate marketing strategies. If your price reduction has provoked an offer or at least an increased level of interest, your estate agent should be proactive in proposing next steps and providing evidence to support their advice. This evidence might be in the form of local property market stats and data or examples of what is selling in the local area and how your property compares in terms of price and appeal.
The estate agency profession has evolved over the last 10-20 years. We saw a big shift towards online estate agencies, with sellers keen to reduce the costs associated with moving house, but this has declined in the last year or two. Many online estate agencies charge an upfront fee rather than charging a commission on a completed sale. This can be an attractive prospect for sellers, but in the current, less certain market, more people are opting for the less risky no sale, no fee model offered by traditional high street estate agents. In 2019, online estate agents had an 8% share of properties on the market. That has now reduced to 5%. If you’re struggling to sell, we would always advise using a local high street estate agent with a robust knowledge of market conditions in your area. Well-known local agents will usually have a database of buyers looking in the area. This means they’ll be able to ‘match’ your property with any buyers who may be suitable. You can also pop into your local branch for updates rather than doing everything on the phone or via email. That personal contact can make all the difference when it comes to proactive property marketing.
In the current market, it’s not just about finding a buyer for your property. You also need to ensure your buyer is proceedable. This means they need to find a buyer for their own current property (unless they’re chain-free). In a slower property market, this can be more tricky than it sounds. Moving house is like a game of chess – you need every piece in the right place at the right time.
If you can’t afford to wait for your property to sell or are struggling to get a complete property chain, there are other options available. Below are some options you may want to consider, along with some of the key pros and cons of each option.
Property auction is probably the best-known option if you want a quicker sale.
Modern method of auction has become popular option if estate agents struggle to sell a property.
Like a normal property auction, your property will be listed online. Interested buyers will then be given a certain amount of time to bid on your property.
If you’re considering buying a new build property, you could explore property part exchange.
Property buying companies offer independent property part exchange. This means there are no rules about which property you use the service to buy.
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