Jan­uary sale ad­vice: why it’s all about the price tag

Re­duc­ing the price of your prop­erty can reap rich re­wards if you are pre­pared to go low enough. Sharon Dale re­ports.

Yorkshire Post - Property - - PROPERTY -

SLASH­ING the price of your home is a sure-fire way of reignit­ing in­ter­est, but for some sellers it presents a huge psy­cho­log­i­cal hur­dle.

They see dis­count­ing as shame­ful, des­per­ate or an ad­mis­sion of de­feat. They of­ten fear be­ing the sub­ject of gossip among friends and neigh­bours.

Oth­ers feel they are be­ing “mugged” and jus­tify this by imag­in­ing what their £10,000 dis­count could buy them. A new car? A world cruise? How can we give that up? The re­al­ity is that their ask­ing price is not what the mar­ket wants to pay so the eq­uity is just wish­ful think­ing.

If you re­late to any of the above then you need to change your mind­set, says Kevin Hollinrake, MD of Hunters es­tate agency.

“You cer­tainly shouldn’t worry what the neigh­bours might think. There is no shame in it. Bite the bul­let and re­duce if you want to. We don’t think any less of M&S and John Lewis when they have sales, so why shouldn’t you re­duce the price of your house? It’s a sales strat­egy and peo­ple like a bargain.

“As for that feel­ing that you’ve lost money, you haven’t if you are sell­ing and then buy­ing an­other home be­cause chances are you’ll get a dis­count on that.”

The key to success is to make it an eye-catch­ing re­duc­tion.

“You have to take a chunk off and it has to be at least five to 10 per cent off the ask­ing price. So if it’s a £200,000 prop­erty, you are of­fer­ing a buyer be­tween £10,000 and £20,000,” says Kevin

“You also need to make sure that your agent ties this in with a fresh mar­ket­ing cam­paign. They should be ring­ing round, do­ing mail-outs and flag­ging the re­duc­tion on the web­site and prop­erty por­tals. They should also look at chang­ing the pic­tures on the in­ter­net and maybe us­ing an in­te­rior shot as the main im­age just to give the prop­erty a new lease of life.”

Tony Wright, head of res­i­den­tial at Carter Jonas, agrees: “A dis­count has to be done at the right time and in the right way, and if that hap­pens you should get some in­ter­est.

“We had a case re­cently where two new houses had been on the mar­ket for around two years with an­other agent. The de­vel­oper came to us and we ad­vised him to re­duce the price by around 15 per cent, re-mar­ket and to have an open view­ing week­end. As a re­sult we agreed sales on both prop­er­ties.

“In cases like that I think a big re­duc­tion of be­tween 15 and 20 per cent is needed to really cre­ate a buzz. It will also put a house into a dif­fer­ent price bracket.”

An­other seller con­cern is that buy­ers will catch a whiff of des­per­a­tion and will try and ne­go­ti­ate the price down fur­ther.

“I think that’s where the agent comes in. They have to take a firm line and point out that the ven­dor isn’t will­ing to con­sider fur­ther re­duc­tions. You get one or two who try it on but most buy­ers are ac­tu­ally happy to pay near the ask­ing price for some­thing sub­stan­tially re­duced,” says Tony.

He be­lieves the time to con­sider price cuts can come as soon as three months on the mar­ket if there has been no buyer ac­tiv­ity and the seller is mo­ti­vated.

Of course, there may be no need to dis­count if you pitch the price right in the first place. Sellers who be­lieve their prop­erty is worth what it was in 2007 need a re­al­ity check. Prices have fallen and buy­ers are thin on the ground and very choosy.

Be­fore you put your prop­erty on the mar­ket, do some home­work and check what com­pa­ra­ble homes have sold for re­cently. You can do this on the Right­move and Zoopla web­sites. Don’t be flat­tered by high val­u­a­tions from agents who are des­per­ate to get the busi­ness. It could mean your home lingers and will have to be re­duced to a real­is­tic price in the end.

“You should get three val­u­a­tions,” says Kevin Hollinrake “Ask the agents to pro­duce ev­i­dence for their val­u­a­tions to make sure that they’re not just pluck­ing a fig­ure out of thin air and don’t al­ways go for the high­est.

“If you end up hav­ing to re­duce don’t worry. It can pay pay off.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.