When to reduce house price ?

BenRM

It doesn't sound as if you're under any real pressure to sell, so I wouldn't be panicked into reducing the price yet. The market's very quiet as people wait and see what's happening... but if you're agents tell you they've given you a realistic valuation but they're not getting you viewings you need to ask them why not... Even if the house is a little overpriced, if it's being marketed properly it should be getting viewings, especially at a time like this when buyers are starting to wonder if they'll soon be able to cut deals. (In other words, too high an asking price shouldn't have such a dramatic effect on viewings, just on offers.)

Doozergirl

If it would were a few viewings then okay, maybe it's quiet, maybe it;s a niche market.

But none? Action is required! I caan't believe the number of people who think it's fine to not have one viewer. Anybody planning on actually selling any time soon?

hearts

Doozergirl wrote: »

If it would were a few viewings then okay, maybe it's quiet, maybe it;s a niche market.

But none? Action is required! I caan't believe the number of people who think it's fine to not have one viewer. Anybody planning on actually selling any time soon?

In my opinion people don't view for 3 reasons.

1. The price is out of their range. Now I dont think this means 10 or 15% above what they are willing to pay. At this they would still view. So even if your house is priced to high I don't think this would effect the viewing numbers.

2. Its not in an area they are interested in. Price makes no difference here.

3. They haven't seen it advertised. This to me is your main aim. You must get it noticed.

Feel free to add more reasons ;-)

jonewer

hearts - if its 1. or 2. as you listed above.... you do realise this is ALL buyers we are talking about here. It may be above the range of some people and outside of an area that some people are interested in.... but not all people surely? Unless its at a price that no one can afford and in an area no one wants to buy in.

You forgot option 4.

4. The property is so overpriced no-one is even bothering to waste their time having a look at it.

MadMonkey, is your place on Rightmove or Findaproperty?

hearts

jonewer wrote: »

hearts - if its 1. or 2. as you listed above.... you do realise this is ALL buyers we are talking about here. It may be above the range of some people and outside of an area that some people are interested in.... but not all people surely? Unless its at a price that no one can afford and in an area no one wants to buy in.

Let me explain. If your house is in Glasgow and on the East side and priced at 250k. Anyone looking for a house on the East Side of Glasgow are your potential buyers. Some will view online or know the particular street and lose interest. Some will be looking for property in a higher or lower price bracket. You then are left with those who are possible purchasers.
People will view a house within an area they are interested in and round about the price they can afford to pay. So in my opinion no viewers means bad advertsing. Its not being seen.

You forgot option 4.

4. The property is so overpriced no-one is even bothering to waste their time having a look at it.

This is highly unlikey, unless the price is vastly overpriced. Which going by the information we have been given is not the case here.

MadMonkey, is your place on Rightmove or Findaproperty?

I don't think you understood me perhaps I was a bit vague. ;-)

SquatNow

MadMonkey wrote: »

The latest house sale prices show it is actually on for a competitive price so currently not over priced.

You're house is only worth what someone else is prepared to pay you for it.

This is regardless of what you or the [STRIKE]cretins[/STRIKE] estate agents think it it worth.

If you really want to sell you need to start knocking SERIOUS amounts of money off of it until people start showing an interest. Work on the assumption that in the current market your house looses 1% of it's true value every week. That means if you wait a month, you'll get 4% less than you would have got it you dropped the price now.

Ultimately, until you have the buyers cash in your bank account, your house is worth precisely £0.

hearts

SquatNow wrote: »

You're house is only worth what someone else is prepared to pay you for it.

This is regardless of what you or the [strike]cretins[/strike] estate agents think it it worth.

If you really want to sell you need to start knocking SERIOUS amounts of money off of it until people start showing an interest. Work on the assumption that in the current market your house looses 1% of it's true value every week. That means if you wait a month, you'll get 4% less than you would have got it you dropped the price now.

Ultimately, until you have the buyers cash in your bank account, your house is worth precisely £0.

You will of course just totally ignore this nonsense. ;-)

SquatNow

Along with the rules of economics.

hearts

SquatNow wrote: »

Along with the rules of economics.

I apologise for being so blunt.

My point is that you are assuming that the market in his area is in a down turn. This may not be the case. In my area the market although slower shows no sign of dropping. His situation may be the same. We don't know.
To panic after 2 months and start lowering the price may well get him a buyer but may also lose him money.
I go back to my point earlier. No viewers is more likely down to bad marketing.
With regard to "A house is only worth what someone will pay for it" This isn't always true. A house is worth what a buyer and seller are willing to agree on. As long as the buyer is in a position to negotiate. When a buyer HAS to sell then the statement is true.

SquatNow

hearts wrote: »

My point is that you are assuming that the market in his area is in a down turn. This may not be the case. In my area the market although slower shows no sign of dropping. His situation may be the same. We don't know.

You're right he could live in birmingham, the only part of the coutry that didn't see price falls in september. You need to check the figures. Pretty much everyone, and I mean EVERYONE apart from the Halifax is saying prices are now going down and will continue to drop.

hearts wrote: »

To panic after 2 months and start lowering the price may well get him a buyer but may also lose him money.

Or we could advise him to wait and try and get full price. then if the market does go down he'll lose FAR FAAAAAAAAR more money.:mad:

hearts wrote: »

I go back to my point earlier. No viewers is more likely down to bad marketing.

Possible. But estate agents offices are dead and the number of sales is dropping off a cliff. Are you saying all estate agent are bad at marketing?:T

hearts wrote: »

With regard to "A house is only worth what someone will pay for it" This isn't always true. A house is worth what a buyer and seller are willing to agree on. As long as the buyer is in a position to negotiate. When a buyer HAS to sell then the statement is true.

I see your point. You could decide that since a buyer will only offer you £150,000 and you wont take it, you could decide that your house is worth £200,000. Or if we are going to do that, £2,000,000,000,000. Simply by deciding your are not going to sell you house, you can state your house is worth infinate money, because you would never ever sell it.

Your suddenly infinately rich with infinate wealth. Which is exactly what Blair and Brown have been telling you.... you've never BEEN so wealthy. :beer:

Yes this is an extreame example, but it is *EXACTLY* what you are claiming. "My house is worth £250,000 because I say it is". Well good for you, I'll just buy the identical house next door for £110,000 then...

What you are refering to is something called "pricing to model" rather than "pricing to market". Ignore what people are prepared to pay for something and make up your own formula to decide it's value instead. This is especially common just beofre a crash in the price of whatever you are pricing. Because the number of sales is very low, because everyone is overpricing, there is nothing to compare to, so everyone just makes up prices.

It get even more fun if you then use you estimated "value" as the basis for a loan, using the priced item/house/whatever as collateral.