5 reasons not to drop your asking price
When your house has been on the market for a while and you seem so far away from selling and moving on. Generally, the first thing sellers will do to speed up a sale is to drop the asking price. As much as they do not want to do this, it can often feel like there is no other choice. The chances are your agent will also blame the asking price.
Dropping your asking price can have a negative impact on the sale of your home. It can create long term damage that is hard to pull back. Here at Austin’s we believe that dropping the asking price it is not always the answer. Here is why:
1. Lack of confidence – You, your estate agent and your buyer should be confident in the asking price. Dropping the price indicates that you are not confident in your homes worth. This lack of confidence can be contagious. Your agent can pass this feeling on to your buyers and you yourself can do this when you meet potential buyers. If you are not confident in your price why should anyone else be?
2. It rarely works – I have seen home owners take this tactic over and over and usually it does not work. You may think that if you price low enough someone will buy. Ask yourself – who wants to buy something that is falling in price? What signals does this give off?
3. Buyers become suspicious – Buyers become wary when they see a price dropping further and further. They begin to wonder what is wrong with the property. Why has it not been snapped up? Why is the seller s desperate to get rid of it? People are very much in the mindset of you get what you pay for. Low price can be interpreted as low quality.
4. It is a slippery slope downhill – Once you get involved in this tactic, where does it end? Often sellers will reduce further and further and further.
5. Buyers do not buy on price – Emotions and gut instinct has a huge impact on whether someone will buy your home or not. Even if the price is a little high if they want it, they will pay it. Do not think that people buy based on cost.
Before you go dropping your price, think about the signals this is gives off. What impression does this create? There are many ways to help a sale that focuses on other areas apart from price. How your house is presented and what your estate agents marketing looks like can all have a huge impact. If your agent is pressuring you to reduce the price, ask them what else can be done before going down this route. Stay strong and be confident in your homes worth.
What to do next:
Are you struggling to get people through the door? Get in touch with us. We’d love to help. We offer straight talking good advice and would be happy to chat about how you could improve the chances of selling your home. Call us on 01902 244200 we’d love to hear from you.
What to read next:
Wondering what else can be done to improve the chances of a sale? Read our blog https://austinsestateagents.co.uk/post/frustrated-you-are-not-getting-enough-viewings