Keeping up with the market place can be hard work, if the prices are spiralling upwards we ride the crest of the wave, you don’t mind putting the price of your home 10% over the market value because that’s the direction prices are going, but then the prices start to fall and whilst most are happy to ride the elevator back down there are those who always seem to be 5 steps behind.
I’m sure we have all observed the stock market in various forms such as film, newspapers or TV and know someone who shouts “Buy, Buy, Buy – Sell, Sell, Sell” every time they see a ‘Gordon Gekko’ opportunity. Well, the property market is very similar – there are times to buy and times to sell, but instead of it being every 12 seconds the changes occur over weeks or months.
THE MARKET PLACE
If the property market takes a down turn or stagnates, then this is generally time to look at your price – if you want to sell you have to ensure your home is priced in the same category as your competition. New properties can come to the market everyday and whilst yours may have been priced correctly at the time, these new properties could be under cutting you.
THE PHONE CALL
THE AGENT PHONES YOU: The agents doesn’t want to make this call, they feel like they are letting you down in one way whilst balancing it of with the need to help you get moving. The agent should be able to give you so much information to substantiate asked for a reduction ranging from recent sales agreed, new properties to the market and building society surveyor values and applicant activity. Ask as many questions that you need answers to, allowing you to make the right decision.
YOU PHONE THE AGENT: If you have noticed that the market place has changed and you feel as though you would benefit from a price reduction – DO NOT PHONE YOUR AGENT! That’s right, don’t phone them, instead write them a nice letter and put your property on the market with an agent that cares !
WHAT AMOUNT SHOULD YOU REDUCE BY?
The simple truth is that there is no figure you can give, it all depends on the properties that are your competitors – not the sold ones, as they may have been going through for a couple of months – but the ones that are currently for sale.
If you are being guided by your Estate Agent and they suggest a reduction of 10,000 based on all the information they have and you decide to reduce by 5,000, then you’re still going to be over priced and in the same situation you were before!
YOU ARE NOT ALONE
Chances are the person who wants to buy your home has a property that they had to sell and that you are also going to buy a property, both of those homeowners also had to make reductions to their price – If your agent suggests a reduction, it’s nothing personal, it’s not an affront on your home, it is just the way the property market is going at that time (I doubt you would take it personally if the agent told you to increase your price by 10,000 in a good market!).
WILL IT HELP TO SELL IT?
Whilst reducing the price can bring it into the sights of a new batch of buyers, it can also bring it back into contention to those who have already viewed it or seen the particulars previously – The most important part of this process is the Estate Agent, they have the ability to generate interest, encourage the right buyers to view your home and create a positive buzz around your property. Just changing the price on the property portals has a minimal effect – ensure your agent has a plan.
Listen to your agent, let them guide you in the right direction and make your decision based on cold hard facts and not your heart. If the equity in your home won’t allow for a price reduction then you may have to wait until the market place changes in your favour, but as your price goes up, so do all the ones you want to buy.
2018 may prove to be a difficult year for home sellers, with the property market set for a slight reduction in prices (all prices – not just your home), but with every negative comes a positive, there are more first time buyers registering looking for properties and it is these buyers who kick start the market, the cheaper the property prices the more buyers there are – which means we are not in line for a stagnant market.