Planning to move out and sell your property? When is the best time to drop your asking price?

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The housing market is almost impossible to predict. An area that was the must-buy location can soon fall into the abyss and be one of those areas you will struggle to sell it. So with all that in mind we look at when is the best time to move out and consider dropping your asking price, if you should at all?

Estate agents are notorious at giving customers lip service and with online agents slashing their fees and taking a piece of the high street agents pie, it seems that now, even more so they are trying to win business at any cost.

According to figures released by Hometrack, a residential property market specialist, the average length of time it takes to sell a house nationwide is 6 weeks. So if your house doesn’t sell after six weeks does this mean that you begin to drop the price? Should you postpone your relocation?

With house prices rising just 2.4% in 2017 and falling in December according to this is money. It doesn’t look like prices are growing dramatically and now is the best time to sell. With house prices in London seeing the first fall in eight years, even the capital of the world seems to be struggling.

As always though, it’s about supply and demand

If there isn’t the supply there then prices will no doubt start to creep up. But what if your house is sticking?

The age-old saying goes that Price is determined by what someone is Prepared to Pay and that still stands true to this day. So your marketing price will normally serve as nothing more than a guide.

Over the years houses have been sold for much higher than the ask and on the other side of the coin, house prices slashed but up to 50% over time. As we previously mentioned, some estate agents can give you a lip service to try and win your trust. Most people seem to get three estate agents appraisals and then set their price based on the average, which is a wise method.

However, when an estate agent is sat in front of you, convincing you with all their might that they can get you an extra 20-30k amd you can move out tomorrow, would you be mad not to take it? Many people take the chance and if you have time on your hands it may be worth a try. Just check the market first.

Depending on your areas affordability can take part in slowing sales down. As prices go up then affordability becomes difficult for those at the lower end of the market. Especially for those in London, where the average house price is currently just over £615000. So for those needing a 30% deposit then they are expecting to have to stump up £184500 deposit.

Tips on setting your first price point

With the power of the internet at your disposal, we always advise doing your own research before you set your marketing price.

How much are your neighbours selling their houses for?

According to Scott from Home House Buyers “It is very easy to set your price on what others are marketing their houses for but is that the best idea? We advise that before you put the house on the market have a look at what similar properties in your area have sold for to you see how yours compares,” check here Seeing what prices things actually sell for can help you to direct your price point.

How many are sold in the area?

Again this is another simple tip to see how things are going in your specific area or postcode. Go on Rightmove (other property sourcing websites are available) and type in your postcode, then do a 1/4 mile or 1/2 mile search.

Adjust the filter to show how many of those properties are sold in your specific area. This will give you a good idea of how active the buyers are in your area. If you have 40 houses on the market and only 2 are sold then chances are that you could be in for a long ride so price accordingly.

On the other hand, if you have 40 houses on the market and out of those 40, 30 are sold then it might be a good idea to listen to that agent and have a fun (even if only for a few weeks).

Check how long things are staying on the market for.

For this again you can revert back to Rightmove’s rich database. Do a quarter mile search of all of the properties in your area and then click the sort tab and filter by oldest first. From here have a good browse through how long houses are staying on the market in your area.

This will give you a good indication as to the realistic times that houses are certain values are spending on the market.

So when is the right time?

In our opinion is it all down to your own personal situation. If you have time on your hands, then we advise you to closely track the market and if you see a trend happening, then follow it. If all of the house prices in your area start to stumble then it may be worthwhile following suit so that your house doesn’t seem expensive. Make sure you’re always ready to book a removal service and proceed to a deal as soon as possible. Combine it with a professional packing service, benefit from the combo deal and leave hassle behind. If you’re unsure what is the best way and how to choose a removals company, you can always research it.

One house can set a trend by dropping their price drastically to try and incentivise buyers to put forward offers. If you aren’t in a hurry, then stand firm on your price, wait for theirs to sell and then things will resume as normal.

If time isn’t on your side, then an aggressive price drop can help your property to stand out from the crowd. This isn’t a guaranteed fair safe strategy as if the market is slow and/or buyers are thin on the ground you could put yourself in the same position just without equity to play with.

Judge the level of interest that you are generating in both viewing and offers. If both or the latter are a bit thin on the ground then after 6-8 weeks of marketing then it might be the right time to begin to drop the price.

Try and look at the Rightmove price brackets and (if you can) reduce your property to enter into a new price threshold. This could open up your property to a new range of buyers.

Final remarks

It is no secret that there are busy and quiet times of the year when it comes to house sales. So we advise that you avoid dropping the price of your house before Christmas the activity levels are low and most people don’t move over the festive period. So a new price in January is always a good idea.

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