The importance of getting the price right!

We know that when selling your home, everyone wants to get the best price possible.
According to Rightmove’s analysis of sales over the last five years, some properties that have been reduced in price are twice as likely to see sales fall through and take much longer to sell.

‘We’re hearing that some sellers have struggled to adjust from the pandemic frenzy market mindset, into the calmer market mindset of the last 18 months or so, and are being over-optimistic on the price they think they can achieve,’ says Tim Bannister, a property expert at Rightmove.

‘Agents tell us that sellers often ask them to try to market their home at a higher price, thinking they can always just reduce the price later with no harm done.’

Bannister adds: ‘We can see in our data that being too optimistic at the start of marketing has detrimental effects on a property sale’.
 

The best strategy, he says, is to listen to the advice of your agent and come to market with a competitive price against neighbouring sellers.
 

Waiting many weeks or even months before making a reduction on your property can mean it will take longer to sell and reduces the chance of selling when the price is eventually reduced.

Almost 60% of homes that reduce within two to four weeks go on to sell. Fewer than 53% go to on sell for sellers who wait eight weeks or more before they reduce the price.

How much is an effective reduction?

Knocking off £5,000 off a £250,000 asking price, for example, is unlikely to result in a sudden flood of viewings. We know that the bigger the reduction, the greater chance of selling.

“Our valuers are experienced to advise on the best realistic price for your home and they will discuss the importance of correct pricing.
 

With over 45 years industry experience and local knowledge, we know our market and our team will advise clients throughout their journey if, and when, a price reduction is needed to achieve their best sale.
Says Catherine Caines, Payton Jewell Caines Managing Director.
 

How to tell if your home is too expensive?

Rightmove have revealed there is twice the likelihood of a home being reduced if the first buyer enquiry about the property arrives during the second week of marketing, compared to the first day. It could also mean the property may spend longer on the market.

Are buyers put off by reduced-price homes?

It’s often a misconception that properties with a price reduction, coupled with some time on the market, is a sign there must be something wrong.
 

It’s not always the sellers fault they market their home at too high a price, however in a crowded market, some estate agents can be desperate to beat rivals to a sale.
This can result in some being promised a higher sale price than they can really deliver, just to win the instruction.

Our best advice to sellers is to be wary of agents telling them what they want to hear on price just to win the listing.

We provide sales data to back up pricing strategies as we all know if the price seems too good to be true… it probably is. Mortgage lenders and solicitors may also raise concerns if a property is sold for way above market value, which can lead to the whole sale falling through.

Don’t let your sale fall through on over-ambitious sellers.

Your home is in safe hands with PJC and you can request a realistic, no-obligation valuation here.

By PJC Homes on August 1st, 2024