Reduce price?

Addison89

We had our flat for sale for now about 2 months with a few viewings but no offer. It’s 2 bed, renovated with a private garden. Other similar properties in the area (London) priced for about the same. EA is asking if we would like to reduce price. I’m hesitant. Should we reduce or take it off the market and wait for interest rates to go down? We would like to move out of London and I noticed houses don’t really get sold there either and many properties prices have been reduced. Any advice would be appreciated!

Albermarle

Most mortgage rates movements lag real interest movements, because most people are on fixed rates.
So many have so far been unaffected by the rise in interest rates as they are still in a low rate fix.
OK for someone with a new mortgage then if interest rated drop their mortgage rate will drop.
However the prospect is for only small and delayed drops in the Bof E interest rate, and almost no chance they will reduce to the abnormally low levels seen in recent years.

On the other hand I was reading today that there has been some uptick in asking prices in March, also in London. Probably due to Spring being on its way.

Personally I would not reduce it ( not significantly anyway) or take it off the market. The main house buying season is just starting.

Addison89

Albermarle said:

Most mortgage rates movements lag real interest movements, because most people are on fixed rates.
So many have so far been unaffected by the rise in interest rates as they are still in a low rate fix.
OK for someone with a new mortgage then if interest rated drop their mortgage rate will drop.
However the prospect is for only small and delayed drops in the Bof E interest rate, and almost no chance they will reduce to the abnormally low levels seen in recent years.

On the other hand I was reading today that there has been some uptick in asking prices in March, also in London. Probably due to Spring being on its way.

Personally I would not reduce it ( not significantly anyway) or take it off the market. The main house buying season is just starting.

Thanks that’s really helpful! What do you think about reducing it by 10k? In that case though, I wouldn’t take any offers less than the asking price which might be offputting?

hazyjo

Sounds like you're comparing prices against others that haven't sold. Have you been looking at 'sold' prices too?

How many years on the lease? Which floor are you on, and is there a lift?

caprikid1

Addison89 said:

Albermarle said:

Most mortgage rates movements lag real interest movements, because most people are on fixed rates.
So many have so far been unaffected by the rise in interest rates as they are still in a low rate fix.
OK for someone with a new mortgage then if interest rated drop their mortgage rate will drop.
However the prospect is for only small and delayed drops in the Bof E interest rate, and almost no chance they will reduce to the abnormally low levels seen in recent years.

On the other hand I was reading today that there has been some uptick in asking prices in March, also in London. Probably due to Spring being on its way.

Personally I would not reduce it ( not significantly anyway) or take it off the market. The main house buying season is just starting.

Thanks that’s really helpful! What do you think about reducing it by 10k? In that case though, I wouldn’t take any offers less than the asking price which might be offputting?

You need context, is this a £2M flat in Knightsbridge or a £200K studio in Walthamstow.

Addison89

caprikid1 said:

Addison89 said:

Albermarle said:

Most mortgage rates movements lag real interest movements, because most people are on fixed rates.
So many have so far been unaffected by the rise in interest rates as they are still in a low rate fix.
OK for someone with a new mortgage then if interest rated drop their mortgage rate will drop.
However the prospect is for only small and delayed drops in the Bof E interest rate, and almost no chance they will reduce to the abnormally low levels seen in recent years.

On the other hand I was reading today that there has been some uptick in asking prices in March, also in London. Probably due to Spring being on its way.

Personally I would not reduce it ( not significantly anyway) or take it off the market. The main house buying season is just starting.

Thanks that’s really helpful! What do you think about reducing it by 10k? In that case though, I wouldn’t take any offers less than the asking price which might be offputting?

You need context, is this a £2M flat in Knightsbridge or a £200K studio in Walthamstow.

£385k in South East London, close to transport and schools 

Addison89

hazyjo said:

Sounds like you're comparing prices against others that haven't sold. Have you been looking at 'sold' prices too?

How many years on the lease? Which floor are you on, and is there a lift?

First floor converted flat, no lift and 900yrs lease. Also no service charge.

lika_86

What was the feedback from the viewings?

Addison89

lika_86 said:

What was the feedback from the viewings?

Nicely decorated, good location but not enough storage space - which I agree with. 

Hoenir

Addison89 said:

hazyjo said:

Sounds like you're comparing prices against others that haven't sold. Have you been looking at 'sold' prices too?

How many years on the lease? Which floor are you on, and is there a lift?

First floor converted flat, no lift and 900yrs lease. Also no service charge.

At some point there'll be maintenance costs incurred that will need to be paid by all leaseholders. The lack of a sinking fund simply pushes the potential problem into the long grass. 

nicknameless

Addison89 said:

We had our flat for sale for now about 2 months with a few viewings but no offer. It’s 2 bed, renovated with a private garden. Other similar properties in the area (London) priced for about the same. EA is asking if we would like to reduce price. I’m hesitant. Should we reduce or take it off the market and wait for interest rates to go down? We would like to move out of London and I noticed houses don’t really get sold there either and many properties prices have been reduced. Any advice would be appreciated!

Interest rates very unlikely to go back down to the abnormally low rates many think are normal from recent years.  Do not make a decision based on the recent anomaly of low interest rates.