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Selling - lowering price

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wheelz
wheelz Posts: 334 Forumite
First Anniversary Combo Breaker
in House buying, renting & selling
My flat went on the market at the end of January. So it's just over 2 months, quite early on I lowered the asking price by £20,000. The EA is suggesting that I might want to lower with another £30,000 which would bring the price to £200,000. I am getting viewers but not that many/enough. The service charges are a bit high but I have a new long lease. A flat in the same block sold for 232 in November. I'm all for lowering the price but by £30,000 seems a bit much and I'm not happy doing that. The EA is saying that we leave the "in excess of" in the ad and if we lower the price to 200,000 I would get more. I am not so convinced, is that really possible? He also seems to have forgotten that early on one viewer said that it wasn't worth more than 210. Why would I lower it that much to then "hope" that he can arrange for buyers to offer enough. I had one person who was interested but he had been stung when buying something in the area and found out late in the process of upcoming works. The flat is in a block and they are doing some interior painting to the doors to the floors, this has only recently been done (last week) so might have put some people off as the doors were bare wood (think replaced to do with fire regulations). Is there any point in lowering by £10,000 now, I think £220,000 is a good price. Or would people just wait until I lower it again seeing as I have already lowered the price before. Any views appreciated.
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  • sitesafe
    sitesafe Posts: 544 Forumite
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    I was thinking of selling my place but there's not much coming on the market within my budget and I've outlined several areas. What there is seems to be coming back as reduced. Just spoke to friend who is property lawyer, said it's slow where they are at the moment (London). I've decided to put any selling on hold for now so I guess I'm not the only one.
  • StumpyPumpy
    StumpyPumpy Posts: 1,458 Forumite
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    So your estate agent believes your flat has dropped in value by 20% in 2 months? Or did they just value it at a ridiculous price to get your business? I'd be asking his opinion on that and looking at getting a different EA's opinion too.

    As far as "Offers in Excess of" listings, I'd steer clear of them. When I was looking to by I'd either ignore them completely because they were from EAs like Springbok or assume that I could get them at or below the price listed. Some people may think it is a good strategy for a desirable property in a buyers market, but as you haven't sold and, I'm assuming, had no offers I guess you're not in that position.

    Without full details on what you are selling and what your expectations are it is impossible to give meaningful advice about what price you should set for it. First step for you should be to get another, independent valuation so that you know where you stand otherwise it's just pulling numbers out of the air.

    SP
    Come on people, it's not difficult: lose means to be unable to find, loose means not being fixed in place. So if you have a hole in your pocket you might lose your loose change.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
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    The reason why you are not getting any viewings is because people think that it isn't worth what you are asking and they can get something better somewhere else. Although a flat in the same block sold for more it doesn't follow that yours will. If someone has viewed and told you that it is not worth more than £210 then that is likely to be the view of anyone looking for a flat.

    Your flat is only worth what someone will pay you for it not what you think it is worth.
  • kinger101
    kinger101 Posts: 6,282 Forumite
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    Did the agent suggest the £250K asking price initially? I'd be looking to see how soon I can get out of the contract with the existing agent, and then re-market at a more sensible price.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • GoingOn30
    GoingOn30 Posts: 231 Forumite
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    As above look to other agents. If someone thought it was worth 220 they probably would have offered 220 even with it priced at 230 so you may have to consider asking 215. Would be worth getting the opinion of a new agent though (with the knowledge that they all are prone to over-valuing to secure your business)
  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    You can always reduce - you can't put it back up for more.

    My EA tried the same thing - I said no. The market was fairly flat and a lot of it was due to wobbles rather than it being worth less (viewings were slow and few and far between, but we did get a buyer who paid near the asking price [albeit reduced from our original price] in the end).

    Something is putting viewers off if you're getting them through the door. Exactly how much is the SC (and ground rent)?
    Can you think of anything that's putting them off?

    Is the lease length mentioned on the particulars?

    Are you willing to put a link up so we can see if you're missing something glaringly obvious, or if we think the photos are terrible?
    2023 wins: *must start comping again!*
  • wheelz
    wheelz Posts: 334 Forumite
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    The common area is not great, that puts some people off. The internal doors in the common area have now been painted (last week). Service charges are 191 incl 37 that goes into the reserve fund. Ground rent is 0 due to new lease.

    I did have the flat valued in the summer of last year for the extension of the lease. It was valued for 250 the same as the EA valued it.

    Yes the lease (number of years) is mentioned in the ad. There is a tenant in the property until the end of April.

    The idea is to change the asking price for something very low (200) and then there would be lots of viewings and hopefully bids that would bid against each other. I'm not convinced myself. I'm not in a hurry but would like to sell as I find the future very uncertain (Brexit, rate of pound (looking to buy in "Europe"), mortgage rate to go up?). Would be good to get it all sorted and move on.

    Have taken the in excess of today, never believed in it. It was suggested to me by the EA presented as an option without pressure.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    Lower it in 10k increments until you start getting interest, and if it is getting too low for your comfort level maybe just hang on to it? One thing is certain, if you don`t sell before interest rates rise you will get a LOT less for it.
  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    wheelz wrote: »
    There is a tenant in the property until the end of April.
    Ah. That's been thrown in there like it's irrelevant, but actually most people won't buy with a tenant in situ. I would take it off the market until vacant then re-sell. Maybe freshen it up too - most rentals obviously tend to look like rentals! Puts a lot off.
    2023 wins: *must start comping again!*
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    https://www.standard.co.uk/business/bank-of-england-must-tread-softly-to-stop-housing-slowdown-turning-into-a-crash-a3806741.html


    Best to take a smaller hit on the price now, rather than a much larger one later :(
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