Thanks to Lisa Corston, our East Anglia consultant, for this great blog post.
It is probably safe to assume that if you have ever sold a property you will have considered dropping your asking price.
Some of you may have been asked by your agent to think about a price cut, others may have been advised it is the only way you are going to secure a sale. And did it work? If the answer is yes, chances are your house would have sold anyway.
At HomeTruths we believe you should never lower your asking price. And here’s why:
8 reasons why you should stick to your asking price:
1. In most cases the drop in price you make probably won’t make any difference to your buyers… whatever their budget. Unless you can afford to slash the price by at least 25% (and why would you?), it really won’t make an impact.
2. Your property was originally valued based on some sound research and by an expert in the industry. What’s changed?
3. A price drop can cause suspicion among buyers, what’s wrong with it? Why have you lowered the asking price? Not a good impression to make on your potential buyers!
4. Unless there is good reason, your house shouldn’t be the cheapest on the street/estate/area. Buyers want to feel they are getting something special. Lets face it ‘cheapest’ and ‘special’ don’t often go together in the same sentence.
5. If you are feeling pressure from your agents to drop your price, ask them what else could be done to secure that sale… put the onus back onto them. That’s what you are paying them for.
6. In today’s market most buyers will most certainly make an offer, not many people will go straight in with the full asking price. If you have already lowered your price, and then go on to accept an even lower offer, how much money have you lost? You do the math.
7. Dropping your price may lead to other properties in the area doing the same. Not only will you have driven down the overall value of homes in your area, but you will still be in the same ballpark as everyone else in terms of price. The net effect? You will be in a similar position as you were before you, except slightly worse off!
8. And finally, have confidence in your price, if you don’t, no one else will!
So stick to your guns and stick to your price… and if you need some extra help, why not give HomeTruths a call on 01483 212677? We would love to help.