Should I reduce the price of my cottage?

LillyBeth

My smallholding has been on the market since August 2010 at the price that 2 EAs suggested (£395k with the view of getting £380k) but it’s not generating much interest (3 viewings!). I figured this was because of the recession, time of year, or the type of property it is, but things haven’t picked up. So I spoke to my EA today to ask if the price was realistic and to say I hadn’t had any feedback from the viewers so no idea what they don’t like. It’s not helped that 2 of the 3 viewers were totally unsuitable, one potential viewer backed out after he found out I lived “close to industrial units”, another backed out as they weren’t visiting the area after all, and I was away when another viewer wanted to visit so couldn’t.

The EA told me that dropping the price to £365/370k could get people through the door or that it’s just a case of waiting for the right buyer, but is he right? I have a distrust of EAs and think they just want to get some commission, so it wouldn’t bother them if I virtually gave the place away! I’d prefer to keep it on at a higher price with the thought that people can then knock me down to what they think it’s worth if they are interested. But if I drop it too much I’m not giving myself much leeway as buyers won’t pay the asking price anyway. I really don’t want to accept less than £365k but appreciate I may not have a lot of choice as ideally I’d sell this year.

Can anyone advise please?

LB

DannyboyMidlands

So it's been on the market for about 10 months and you've only had 3 viewings. Surely, deep down you must know that it's priced too high? I'd definitetly drop to £365k, maybe even £350k.

Conrad

I've been a broker 20 years and always always the truism applies that if a property is priced correctly for the current market, it will ALWAYS sell within a couple of weeks. It's simply a function of a marketplace where buyers are prepared to comit when the price is correct. Even 20 years ago I used to overhear sellers arguing the toss on price as a great many of them overvalue thier house in a similar way that the parents of x factor contestants over estimate thier cherubs tallents.

I've known stubborn sellers be on the market on and off for years until they finaly get the message.

If the price is right, purchaser will find the property quickly and want to view, just as applies mto selling a car, it really is that simple.

People always confuse thier own over estimations with market conditions. In any market all things will sell if correctly priced for that given market at that moment.

The very deluded / greedy sellers never cease to amaze me as they want top dollar for thiers but as a matter of course expect others to sell to them for as little as poss. We all do this to an degree but the uber nutty sellers take it to irrational heights with completely flawed logic whereby they just matter fo factly argue the one they want to buy should be as cheap as poss where as thier own chintz pit with awaful brass locks and door knobs must be worth top dollar, afterall it's the best nin the street (of course).

I guarantee if you set yours at MARKET PRICE, the market will have you a buyer within days. However nice you consider your place, 99% of incommers will strip it and start over. Delluded sellers never get this.

Best of luck, but really it is not about luck at all.

CloudCuckooLand

You need to research your local market. Understand what things are going for, nearby. www.houseprices.co.uk etc. Rightmove's Price Comparison section.

And consider where you will be moving to. If you get a decent drop in price at that end, it will give you more room to manouevre at the selling end.

It may have been pre-Xmas quiet spell that was the initial problem, but the spring has well and truly sprung now, and anyone remotely interested would have viewed by now.

It could be regional. Some areas have really tanked, despite average stats/headlines appearing flat. Use Land Registry house price website to see how prices have moved in your region over the last year, and over the period you have owned the place to understand the way the market has altered since you bought it.

Errata

Did the agents who valued it and the agent you have it on with specialise in smallholdings?

LillyBeth

DannyboyMidlands wrote: »

…Surely, deep down you must know that it's priced too high?...

I’m really not sure as it’s not the sort of property that’s easy to value apparently, and it’s on at what the EAs advised. It’s a cracking period property (inglenook fireplaces, top of the range wood burner, new kitchen, new bathroom, new flooring), with 2.5 acres of gardens and paddocks, so it’s not as though it’s a 1 bed flat. Plus I’m always hearing how so many people are finding it difficult to get mortgages, how the market is “slow” for the majority, that to be honest I don’t know who’s right.

Toggertytoo

Have you had more than one agent look at it ? Our house was priced at a silly price - went to 3 other agents who all agreed so adjusted the price. Even the old supermarket trick of making it look much less than it really is by changing it slightly- £379,995 for example ! Moves it into a more affordable sounding bracket straight away without dropping it loads.

LillyBeth

CloudCuckooLand wrote: »

You need to research your local market...

Thanks CCL, I’ll have a dig about. Thankfully I’m not looking at buying anywhere so (since January) my place has been marketed with no forward chain, so that’s one less hassle.

Errata wrote: »

Did the agents who valued it and the agent you have it on with specialise in smallholdings?

They don’t specialise in smallholdings but this is a rural area so they are used to places with land. But I am considering listing it with an online smallholdings for sale website, but need to check the small print from my contract with my EA first.

Toggertytoo wrote: »

Have you had more than one agent look at it ?...

Yes I did and they all said the same.

ladymarmalade1970

We tried to move last year to a small holding in Throckenholt however we couldn't sell our house for enough to make it financially viable. The small holding we wanted was less than our home that we live in now. How remote is yours? The reason i ask is that the EA told us remote properties were much harder to sell. We took our house of the market in the end as we weren't prepared to drop any further and the lady we wanted to buy from also took hers off the market.
Not sure where you are but East Anglia appears to have been quite badly hit. Our area has also been quite badly hit, SE, Hampshire. Unless you are moving up to a more expensive property now is not the time to sell. We have decided to stay in our home for at least another 5 years now. There were people interested in our house but they couldn't sell theirs. Same as we wanted the other lady's house but couldn't sell ours.
Maybe it's a little better now but doesn't look it when i look on rightmove. There is nothing on there really now....

FATBALLZ

LillyBeth wrote: »

I’m really not sure as it’s not the sort of property that’s easy to value apparently, and it’s on at what the EAs advised. It’s a cracking period property (inglenook fireplaces, top of the range wood burner, new kitchen, new bathroom, new flooring), with 2.5 acres of gardens and paddocks, so it’s not as though it’s a 1 bed flat. Plus I’m always hearing how so many people are finding it difficult to get mortgages, how the market is “slow” for the majority, that to be honest I don’t know who’s right.

Buyers are out there, but they are in general more sensible than the sort you might have found in 2007.

Of the 12 properties I viewed before having settled on the one I'm in the process of buying, 2 were marketed at what I'd say were realistic prices.

Maybe not a representative sample, but that will be 10 of 12 people complaining the market is 'slow', when really they are just slow to realise other people don't value their properties as highly as they do.

TOBRUK

LillyBeth wrote: »

My smallholding has been on the market since August 2010 at the price that 2 EAs suggested (£395k with the view of getting £380k) but it’s not generating much interest (3 viewings!).....

The EA told me that dropping the price to £365/370k could get people through the door or that it’s just a case of waiting for the right buyer, but is he right? I have a distrust of EAs and think they just want to get some commission, so it wouldn’t bother them if I virtually gave the place away! I’d prefer to keep it on at a higher price with the thought that people can then knock me down to what they think it’s worth if they are interested. But if I drop it too much I’m not giving myself much leeway as buyers won’t pay the asking price anyway. I really don’t want to accept less than £365k but appreciate I may not have a lot of choice as ideally I’d sell this year.

Can anyone advise please?

LB

Well I put my house on the market end November 2009 and I've just sold and am waiting for the date of completion and move to my new property! November 2010 I dropped the price by £5,000 - I wasn't getting many viewings although there was a little trickle.

Since January I had more viewings to my surprise as I thought in the current climate there would be less looking to buy! Between February up until I received an offer end of March I was exhausted as I was getting 2-3 viewings a week!

LillyBeth, only you know your bottom line on what you can afford to accept if you get an offer. Do you know what you are going to do if you sell ... are you looking to buy another property?

Be certain before you drop your price and remember if people have an upper limit they will only look up properties near their price range - I was only looking at properties upto £20,000 above the price I could afford and keeping an eye on them as a number of them sold after they dropped their price - some dropped £20,000! Ofcourse it does depend where you live - location, but, people are looking for different things and it depends what their situation is.

It depends on people's circumstances of why they are selling e.g. they may be desperate to move, they may have found a place to buy they don't want to lose, there may have been a break up in a relationship or some may be moving abroad etc.

Are you desparate to sell and move? Your circumstance will probably have an influence on whether you drop your price or not. Good luck but don't sell it for less than you can afford - do your sums.;)