Why reducing the price of your property could be a good thing

Why reducing the price of your property could be a good thing

Once upon a time, reducing the price of your property was considered a terrible thing to do. It made you look desperate, and buyers could take advantage of your desperation and make ridiculously low offers. But, as we head into a changing property market, is that still the case?

Many years ago, it was thought to be terrible to have to reduce the price of your property. What would people think? No one wanted to buy your home; there must be something wrong with it! It would seem like desperation, and you would have no chance of getting a decent offer as buyers would zero in on your need for a sale and offer eye-wateringly low prices. If you were, in fact, desperate for a sale, you would be left with no choice but to accept these offers, selling your home for less than you had hoped for. They would have you over a barrel, and you'd have to accept defeat.

 

But is that still the case today?

 

No, not really. Since the last recession in 2008, thoughts about price reductions on properties have relaxed considerably. The property market changes quickly, so getting everything right from the outset is almost impossible. Deciding on a marketing price for a property is an estimate; there is no concrete guidance and no crystal ball, simply an estimate of what the seller and agent think they can sell the property for. Adjustments have to be made sometimes, and with the introduction of technology, a price reduction can actually have a positive impact on your sale. 

 

It's no longer taboo and will not bring negative thoughts about the property. Buyers may notice that the price has dropped, but they don't see that as a bad thing; rather that you are serious about selling, but the first thought is not that you are desperate.

 

Perhaps it's because we are used to the High Street shops always offering sales, shopping at designer outlets that clearly identify the RRP on the tag and the discounted outlet price. We don't like the clothes any less or decide not to buy them because no one else purchased the items from the high street shop; we simply take it for what it is, something you like and want to buy at a lower price than its total value.

 

Maybe this readjustment of our buyer psychology works the same way for property. We don't look at a property that has corrected its pricing and assume it is bad or the sellers are desperate. We simply consider it to be a discount, a bargain. And this can encourage a buyer that is on the fence to jump in with an offer when perhaps they might not have done otherwise. It could be the gentle nudge that they needed.

 

Reducing your price, if necessary, can be a great thing and could be the way to clinch the deal.

 

  1. Reinvigorating the property's marketing and promotion, allowing mailouts and matches with buyers again, like bumping a post on social media. 

  2. Introduces the property to a new price bracket, with new buyers searching within it. These buyers may not even know your property is for sale as it might have been out of their budget.

  3. Buyers who saw the property at the old pricing will know that you've reduced the price, which might now align with their opinion of the value.

 

A price reduction can be the key to securing a sale, particularly if you've been on the market for a few months without success and have tried everything else.

 

If you're trying to sell your home and are struggling to get viewings, contact our property experts for a review of your marketing and advice on finally getting those offers rolling in. 

 


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