How do you know whether to drop the price? Any by how much?

[BuildersBilly]

On the market for ages. The market generally is crazy busy. Thought we'd sold when we had an offer but by the time they sold theirs they had found somewhere else to buy.

A steady stream (trickle) of viewings but no other offers. Dropped the price by (£50k) about 6.5% but not much changed. Got fed up with agents so we've just relaunched with another agent. Massive declutter, moved furniture, great new photos - got it looking fab BUT no bloody interest.

So disappointing we are in a popular area and many things are selling fast but some are just hanging around. House needs a new kitchen and is not 100% pristine but it's not bad and most certainly liveable.

Do we drop again?? Another £50k? The numbers still work and we can still buy what we want but what if we drop drastically and nothing happens?

It would probably be sensible to wait a year or so and do some sprucing but it's so bloody hard once you've decided you want to move. Agents advise against spending money on it.

Grateful for any words of wisdom.

Your agent will be best placed to advise you but if it's not selling the price will be the issue

Where we are the market is similar - pristine houses with 3 plus beds and mid/large gardens (even ugly ones in not the best part of town) are selling pretty fast, some as soon as go on, rest within a couple of months.

What appears to be staying on market is houses with no garden and some of the houses with small gardens but this varies by price - at £600k they are selling if in pristine condition, £650k its variable, £700k most sticking on market.

The renovation houses are quite variable and have to be reduced a lot and the ones are by us tend to be complete renovations. I suspect there's less demand than normal for these houses, maybe people are worried about doing work in lockdown, don't have the extra cash after larger deposits, some developers in trouble.

We were advised to go on pristine or a complete renovation and nothing inbetween so we did all our house. Now we've been on 2 weeks had 9 viewings which is reasonable but we keep getting house is lovely but garden is too small. We hadn't finished the garden when went on so are doing that and that has shifted things a bit from no to maybe and one or two second viewings expected. Our photos are a bit rubbish. The market appears to have slowed down recently with much less coming on.

I think as stamp duty only goes until March and another lockdown maybe looming I would try cutting price by £50k rather than renovating. If that fails then would renovate. If there's bits and pieces you can do whilst on the market that may help a bit but its largely price.

I found it useful to look on Rightmove at what was selling at what price recently and gives good idea of why things are sticking.

@Dazedandconfused10 agents don't really know why interest is so low. Price is obvious but we had just as many viewings at the higher price as we have 50k lower!

@KoalaandRabbit yes its a big house with a small garden and that is the issue. Other similar things have sold though. Has plenty going for it like close to town and great school catchment.

I think we'll have one last go at a 50k drop and if nothing happens just take it off until next year.

How much did you pay for it and when - and how much is it on the market for now?

The market does seem to be slowing considerably now.

Paid £600k in 2013

Went on at £800 now at 750.

I think if you're not getting viewings, it's the price. Do you have someone to give you an objective view? If you can recognise areas that need renovation is that reflected in the price?

And an agent will always say don't do the work - they just want it on the market so it's sold and they get their commission.

@Africa2go the agent just said doing the work wouldn't get a better price just a quicker sale.

Really no point doing the work - it's the size of the garden in your case that puts people off, as you say. Seen examples of this also not selling fast. I'd reduce by 50K - people see how much you paid 7yrs ago and may think it's overpriced, 700K is already making a lot on it in 7yrs so you probably wouldn't feel like yo uare losing out.
Overpriced houses do sell if a garden is good size - just the current mood!

Sympathies OP.
I’m in the same boat. House been on since just before lockdown, got an offer the weekend viewing restrictions lifted, in June/July, but our buyers couldn’t get a mortgage.
It went on at 675k, we reduced the price to 650k in August, but no offers since.

I would say though that I think asking 200k more than you paid for it 7 years ago is quite steep, and it might put buyers off if they’ve looked up how much you paid.

I paid 600k for mine 3.5 years ago, so asking for 650k I don’t think is bad... and still no offers 😬

Yes i'd drop by £50k again and be absolutely chuffed to bits that my home had made me £100k in 7 years!!!!!!

Do you absolutely have to sell?

Gardens have become uber desirable & things that were desirable like being close to town centres are now much less so - I'd look at dropping the price personally.
Don't know where you are exactly, but £600k in 2013 - i'd shoot for £650k-£700k now.

This calculator is good on average prices by region but the average house price in the UK has risen 31% since Q3 2013 so the average house price change may not be the issue.

www.nationwide.co.uk/about/house-price-index/house-price-calculator

I think the issues will be small garden and needing renovation but the more you reduce price, the more compromises people will be prepared/need to make. In our area some buyers seem to be making their decisions as if we are going to be in permanent lockdown / permanent working from home so garden size has become much more of an issue than it normally would. Be interesting to see if the weather changes that at all once we get to everyday is rain. I suspect when lockdown ends it will revert back to normal but by that time housing market could be falling due to job losses / restricted lending. So would go with price cut now.

Thanks all some good advice.

It's really "lockdown effect" impacting on price. Next door (slightly larger garden more scruffy inside) sold for over 800 last year.

I know the garden size is an issue but before lockdown no one would have expected a garden any larger this near to town. Funny really how a short term situation has such a big effect.

Problem is waiting a year / 18 months means a more difficult market so I can see us needing to reduce price anyway.

Risk is we drop by £50k and nothing happens. In that case I guess decision is made for us and we will wait.

We don't HAVE to sell but once you've made that decision it's bloody hard to put it on hold. We also have job reasons to want to do it quick which all adds to the pressure.

Thanks for all the advice.

I actually think that your price is correct if you bought in 2013. Obviously depending on where you are. We are in Kent and we also bought in 2013 and sold July 2020 for just over 40% of the what we paid. We did spend about 13% of what we paid doing work to the house over the years. However, I also appreciate that some areas have never really recovered since the last recession.

@BuildersBilly

Paid £600k in 2013

Went on at £800 now at 750.

Have you done much work to it since you bought it? Are the 2013 pics still on Rightmove under 'sold prices'. I just wonder if you haven't done much to it, people will wonder why it's gone up 200k in 7 years. I know that can be a normal price increase in some areas, but from what I've seen that kind of price increase often reflects that the house has been much improved since its last sale.

@CeibaTree we've done quite a bit of work. Old photos aren't available but we've probably spent £50k. Its not at all an unreasonable increase for the area in that time and if it weren't for Covid we could well have sold at close to £800 .

We are going for £50k drop and we'll see what happens.

Good luck, I hope the price drop does the trick and it sells quickly :)

Op you are posting with 2 different usernames

I know @Alexalee I am easily confused.

Thanks @CeibaTree fingers crossed.

What area are you op?
Don't agree with the comments saying 200k after 7 years for doing nothing is an issue.
Parts of the country prices have doubled in that time

@Alexalee we are in North Yorks.

All the agents we have spoken to say the market is very strange at the moment. Some things come on and sell straightaway and others do not but it's not obvious which ones will do well. I think the overall biggest factor is the garden as that is what people want at the moment.

I guess to some extent if you price too low you get more than one interested party and they have to compete. Biggest worry is nothing happens.

We will see.

the agent just said doing the work wouldn't get a better price just a quicker sale.

Given that your house needs a new kitchen, I can’t see how a buyer would pay the same for a dated one vs a lovely, new one.

It does seem a bit weird that next door sold for over 800k with a slightly bigger garden but more tired interior. Are you sure everything else was the same? Ie the layout, extensions/conversion, number of bedrooms, bathrooms, utility, parking?

@JoJoSM2 the agent specifically warned against a new kitchen as so many people want to put their own in. I would hate to do a kitchen just for sale as how do you get the balance right between cost / quality when you are selling? The advice about it not adding to price was more about decorating and carpets etc. Its a big house and either of those very quickly would be £££.

The point is we have had no interest at the current price. We've changed agent, new photos etc so the only other thing we can do is the price.

Next door is not exactly the same no. Similar footprint - we are a bit bigger but taller and thinner which is probably less desirable. The point is in a normal market we weren't being ridiculous at the higher price.

Could you post a link? MN are great at getting houses sold 😉