Would You Reduce Again Now In The Current Market?

[Evenstar]

My house has been on the market since the end of November, I reduced it by £25,000 in the middle of March. It is certainly not overpriced in comparison with similar properties (there are actually only around 10 properties altogether in that price band on the market in that area). I have only had 2 viewings in total, one off the back of the reduction, which was very positive but didn’t result in an offer.

We were able to move to our next property anyway, but are now 4 hours away and the cost of keeping the house empty will rise as time goes on. There is only a 2 month reduction on council tax and obviously the heating will need to be turned on again when the autumn comes.

With the news today of a further potential interest rate rise I don’t feel optimistic of a sale, my dilemma is that to take it down a band on Rightmove I would need to reduce by another £25,000 which is a significant and I think that would be undervaluing it in comparison with other properties. I also fear that the pool of potential buyers is reducing rapidly due to the number of former buy to let’s which are coming to market and first time buyers buying those so chains are not starting.

Any opinions welcome to assist with the thinking process as I feel very unsure of my next step. TIA

You could drop a band and list it as offers over £££, perhaps see if agents can come and take some better photos, lots of listing now have aerial shots which stand out quite a bit.

Yep drop it down a band and say offers over, you say its not over priced but with minimal homes in the market at the moment if yours isn't selling its due to price.
Please remember its very hard to be objective when it was your home.

If you need to sell, drop the price and fast before everyone else does.

Are the similarly priced
Properties selling?

The market has just taken off like a rocket round here. We've just accepted an offer on an inherited property, and that was only on the market for two weeks. With the money we want to buy somewhere for dc.

I saw a 2-bed house come on the market in our town yesterday (rare as hen's teeth) and arranged to view it today. Just as I arrived I got a phone call to say they were cancelling the viewing as they've had an offer on it already - in less than 24 hours. Really annoyed about that, especially as it has probably been bought by a buy-to-let investor, and we are cash buyers.

@cocksstrideintheevening several have sold in the last couple of months, they would be towards the bottom of that price band, smaller and without a garage. Of course there is no way of knowing until sold prices go on Rightmove whether they have taken a lower offer.

I have been told twice this week that even though interest rates may rise until summer, lenders factored this in long term so rates won't go up. I have been watching rated drop by various lenders for weeks (mortgage strategy newsletter) and we have just got .10% off rates being offered to us by waiting 10 days.

Idk what will happen with BTL homes and FTBs. Tbh I think most of them are terrified of paying a high rate for a long time (5 years are the best deals at the moment) or taking a risk with two years that they are probably steering clear.

If I were you I would wait a bit longer. 25k is an awfully big drop. Also, why does it have to go down an entire band, why not just by 5k?

Anyway, hopefully it will pick up soon because folks aways want to move in preparation for new schools starting in September.

If you are really nervous, talk to a few brokers about their views on medium term mortgage rate changes and what that's likely to do to the number of buyers.

@KievLoverTwo I thought it probably needed to drop into the next band for fresh interest with buyers who had a lower budget, the agent hasn’t suggested such a large drop, I am still undecided about reducing further so grateful for everyone’s opinion.

Possibly. But if you put it down £500 (check with EA what actual figure is) it still reappears in people's Rightmove inboxes again. There's always going to be a few that are so fed up of looking that they will reconsider properties they previously wrote off.

I would consider someone doing fast price reductions in short spaces of time as desperate to move, and I would be more likely to be a bit outrageous with my offer.

Or I would think they had been hoodwinked into overpricing it by the agent who is now gently suggesting it's the market's fault, not theirs. Which is a crappy but real strategy they employ to get you on their books.

I did get two agents in, there was very little difference in the valuations and I actually went with the one I chose for other reasons, including the fact they used a professional photographer. It is a sought after area, and houses would normally sell quickly and that was the case even after the 2008 banking crisis.

In that case, I bet it will pick up as soon as schools close for summer.

Difficult to gauge what drops of £25K mean without knowing the asking price at least approximately?

It was on for offers in excess of £600,000 and is currently on for £575,000. Both agents advised OIEO initially as they acknowledged pricing was more difficult after Truss and Kwarteng’s special economic operation 🤬

I agree with this in principle.

Whether £25K reduction is significant or not depends on the approx value of the house. If it is on for > 1 million, it's not a big enough reduction but obviously different if you are marketing for £200,000.
From what I see and read, prices are falling in the great majority of regions. If you need to sell, it is better to be a bit lower to attract interest in your property relative to others. Potential buyer's purchasing power has been markedly reduced by a combination of factors, not just interest rates, so it falling prices and waning interest are to be expected.

Thanks. £25k isn't a massive reduction then. You will be only 8-9% cheaper than your original price.

Two viewings in 5 months is a really low level of interest so something is clearly wrong/ not attracting buyers at present.
Can you look at other comparable with a friend for an objective eye and then reduce below them?

@rainingsnoring that sounds like a good idea to try and look at the other properties when reconsidering the price. Thank you

Have a look at 'Moving Home with Charlie' on YouTube/ twitter.
He offers good advice to buyers and sellers.
Good luck.

Thank you

Given the price you are on at, I'd drop the 25k. I know it's a lot of money, but the stress of 2 houses is also quite a lot.
Are you brave enough to put a link on here to see if people can spot any issues?

Yes I’d definitely drop. We have already dropped after 4 weeks of no offers… and considering dropping again shortly.
I personally wouldn’t use OIEO as that further puts people off… ideally, you want as many people to view as possible, even if they make lower offers, to create the competition .

I also think you should probably get different estate agents... if they have only found 2 people to view your house in 5 months, then you need someone more pro-active. It doesn't sound like they've done a good job for you at all.