Reducing house price to 'offers over'

[AnnieDog]

Our house has been on the market for 6 weeks and not sold (only had 3 viewings, 2 of whom were investors even though it isn't really a suitable investment property).

We're conscious that it's probably the price so are now looking to reduce. We had 3 valuations before we put it on the market; 2 were £170k and one was £175. We put it on for £170 as didn't want to contribute to overinflated prices etc etc... Because they'd all come out around the same, we thought this was a reasonable valuation, but now realise it was the EA overinflating the value to try and get our business

The question is: do we reduce it to £160k (what we'd ideally like to achieve) or go 'offers over £155'?? I feel like the latter might generate more interest/viewings...but do people really take any notice of 'offers over' or still offer below the asking price...?

Any advice/experiences will be gratefully received!!

I think In this dreadful market 6 weeks is not a long time at all. It’s also a buyers market so they are going to want to offer lower than whatever you put it on for so if you need 160 then I would leave it on at 170 - your estate agents should be doing to work to push people with a 160 budget to the house and saying you may accept an offer. I can’t imagine people with a 160 budget wouldn’t look at it - it’s a buyers market and they’ll expect you to come down anyway. When we had our house on for offers over a few months ago we were still getting offers under. People will still only offer what they think it is worth in a crap market.

I’d price slightly over what you want to achieve. I’d always offer under, even if it said “offers over”. Most people do, it’s human nature to want to haggle.

Six weeks is nothing. Most people are holding back to see what will happen after Brexit. Unless you are absolutely desperate, I’d hold tight. Quick reductions flag up that you are desperate and attract vultures. And yes, “offers over” is meaningless. People will offer what they offer and you can’t stop them offering under with two words.

thewinkingprawn - It's only a ''dreadful market'' for overpriced houses... just how ''dreadful'' depends on just how overpriced it is.

With stock levels and interest rates both at pretty much record lows demand is still massively outstripping supply, I fail to see how anyone can describe it as a ''buyers market''... Anything that is vaguely realistically priced should receive an acceptable offer within a couple of months at the most.

Agents ALWAYS over value, If £170k really was a realistic price then you would almost certainly have received an offer within about 5% by now.

Offers over puts me off. I think in your budget which is FTB territory (or would be round here, anyway) they are if anything more likely to be put off by it.

Thanks all. Sounds like we definitely shouldn't bother with offers over at least.

The market here (Midlands) isn't that bad atm. Some houses aren't shifting (and are probably overpriced), but others are getting snapped up within days. It feels like there might be a difference between the market we want to buy in (300ish, semi, near good schools - the kind of house that is always in demand I guess) and the one we're selling to, which is first time buyers. I suppose if you don't have to buy you can wait and see what happens with brexit more...?

Are you in England or Scotland, OP? Here in Scotland the system is always “offers over”, and people have to offer well over the asking price to have any chance of getting the house, as it’s a sealed bids system, and you don’t get a second chance to haggle on the price.
DD recently lost out on a flat that went for £70K over asking - there were 19 buyers and she only came sixth with an offer of £40K over asking.
In England I think it’s the norm for people to start with an offer under asking price, then negotiate upwards.

When house hunting, I ignore the words attached and look only at the price. Just put it at a tiny bit (2k) above what you'd realistically sell it for. You are unlikely to be able to sell it for exactly the asking price in this market.
You have already tested the market for your house and, by getting very few viewings, you know it is too high or, the photos and floor plan do not do it justice. Something needs to change to generate more viewings.

Offers over is a put off. List it a little above the price you would be willing to accept.

How about trying a guide price of 160-165? You're more likely to get a good price that way!!
Also I would advise doing £155k, Rightmove search brackets are in the 10's at your price range so by not being on those figures you can dramatically reduce the amount of potential buyers seeing your home.
If you're in the midlands 6 weeks really isn't s very long time and it's also January and been Christmas!
If you are not under any time pressure I would give it another 2 weeks before changing anything

I've been an estate agent for 11 years so just going off my experience

Good luck!

6 weeks isn't that long, but only 3 viewers isn't great & does say its overpriced unfortunately. Definitely forget the offers over, because you will likely end up with offers 10k lower than that. If you want to bring your house back to the top of the listings on Rightmove you need to reduce it by at least 3%, but your best bet is to make a reasonably significant drop to 160k, which is less than 6% & likely to get you more interest & hopefully offers not too far off of that, but realistically you could be looking at 150k. If you plan on doing that also get some new pics done or ensure the ones you have are rotated. What feedback are you getting from the viewers you have had? What have recent comparables sold for? Could we take a look & critique presentation?

Six weeks isn't long considering the market and with brexit ha going over us. If you want to speed things along I would reduce to £165 first and see what interest that brings.

*hanging

I'm in the market to buy right now and offers over just tends to be a turn off from my personal perspective just feels vague and I'm not dead comfortable with negotiating so I'd probably talk myself out of looking at a house listed like this.

If you want 160 why not list at 165 ? 170k as a start price to achieve 160 would take a cheeky offer and not everyone would feel a vendor would take such a reduction

When I was looking, "offers over" would have zero effect on me - if I thought it wasn't worth that, I would still offer under.

Same with guide price - if it says guide price £150-£155k, I would generally offer £150k or under because it just seems like people trying their luck.

I look at comparables, what it sold for last time and when, and base my offer on that. What I'm seeing down here is a lot of people asking for the same amount as they bought for in 2007, just before the market tanked - prices have not reached those levels again yet, but they don't want to make a loss.

Are the photos good? Cleared away all your personal knick-knacks? Does the floorplan do your property justice? Have there been other sales on your road you can compare with in terms of realistic pricing & presentation. I would call up those EAs and find out if you haven't already spoken to them.

Fwiw, took my DP 7 months to sell his - price wasn't the issue, just finding the right buyer.

I also agree that brexit is making people nervous. Have heard from others who are delaying to see developments. So don't rush to reduce unless you need to move urgently.