Lots of properties reduced in price(11 Posts)
I live in a popular area where house prices are relatively high. I am looking to buy so check rightmove every day and I have noticed that there are a lot of houses reduced i.e. 38 out of 116 in my price range. Does that sound like a lot to you?
Could it be they were overpriced in the first place or is it a sign the property market is starting to slow? Is it the time of year?
There was a recent thread about houses sticking in the London area so wondering now, especially as I don't want to buy at the height of the market if things are slowing.
It could be anything. I wouldn't read too much into it.
I wouldn't say things are slowing down as such, more that people are more cautious due to current uncertainty.
It could be down to vendors accepting their properties aren't worth as much, it could be because sales have fallen through and they want to find a new buyer quickly.
If they are houses that have been on for a while, maybe they've been told by agents that Spring is a good time, more buyers etc so they have reduced because of that. No one wants to look at/buy houses after Christmas when it is cold etc, spring is when it really picks up.
So many reasons.
It's similar in our area. We have just sold out house last week. We reduced the price of ours by £5k because the house that we had fallen in love with had reduced their price by £10k and we were worried it would get snapped up at that price. 'Our new house' need to move quickly that's why they reduced the price. When we reduced ours it put ours at the top of the lower price bracket (we were previously at the bottom of the next bracket up if that makes sense). That then caused several others to drop their price.
So in effect one house changing their price caused a snowball effect with several other houses. This could be what's happening in your area?
I think people who need to move are getting their houses sold now before more competition appears around spring when the market picks up.
We recently sold. All of the estate agents I interviewed had a strategy of putting it on for the best price they felt it would get and then reviewing/reducing after a few weeks if we didn't get a quick sale. I think it's a standard strategy. Also when you drop the price however minimal the difference, it triggers an email to people who've asked for alerts on that type of property - a second wind for marketing.
So in my opinion the number of reductions you can see probably doesn't mean much...
They probably got over valued. And there wasn't much interest. I'd look at the EA who valued them too, to see who's over pricing them.
I wouldn't worry about it. We're also looking to move and checking right move every day and in doing so notice that loads of properties get reduced, but sometimes the price change is so small, I think like a previous poster said, it's for marketing purposes so the property comes up with the new ones again, hoping to get people like you or me to take a second look.
That's a good point about it being a known strategy. When my house was valued, the estate agent said try it at the top price for six weeks and then reduce it.
I agree this is really common, some estate agents appeal to the greed of the seller, they value the property too high to get it on their books, knowing full well it very likely would never sell for that price then after a few weeks the seller knows that too and the price has to drop. People often go for the agent who values the highest, as opposed to the agent who would be best. It's their key point to pick an agent.
My agent did it to me, small town, one main agent, I argued it wasn't worth that price, he convinced me otherwise and was adamant, queue two small price drops then me taking matters into my own hands, pricing it correctly and it selling. Took about six months.
I wouldn't read anything into it.
I don't know why it's done then. It puts me off if a house is reduced as I think, what's wrong with it? Why hasn't it sold?
Interesting point Yeahfine, it always makes me think that the vendors are open to offers and that it may be worth a cheeky punt. I think it also shows that they are serious about moving.
Obviously this may be very different in a fast moving area! Nothing is selling here at the moment.
Where I am: very few new properties are coming onto the market, the ones still there have been there for a while.
Why are some properties not selling? a) some are difficult properties - the half finished renovation job (no working kitchen or bathroom)
b) some estate agents are really pushing the price, some estate agents seem to "sell" fewer than others
c) one estate agent didn't get back to me even after a few requests to view - I think they may want to redevelop or change the use of the property
d) sellers having unrealistic ideas of the value of their property - one has a lovely living room, but the rest of the house is disappointing (and too personally decorated, black bathroom) - you can get more for the same price.
Some estate agents put a property on at a premium price - in the hope it sells fast and they get maximum profit. But will then push sellers to lower their price, in the hopes of generating more interest.
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