Drop the price now or new year?

[wereonthemarket]

We put our house on the market 3 weeks ago. No viewings.

Our aim was to move in the next 2 years when we can realise a certain amount.

Obviously the market is slow and people are uncertain with mortgages/inflation etc but I think we must be over priced to have had no viewings.

We'd planned to drop the price in January if we got no interest but are now toying with dropping it now.

Valued at £675-700. Currently on the market at £695. The minimum we will accept is £650 (we won't sell for less than this in the next 2 years - we will just wait and reevaluate then). So we could go £675 now then offers over £650 in January. Or we could wait til January as planned. Thoughts?

No one is forcing a buyer to view a property that they can’t afford @whyisitallsohard

So it’s hardly wasting their time if they chose to view a property they see listed at a certain price. Arguably they are wasting the Sellers time not the other way round.

I echo what others are saying about getting ahead of the curve. The market is expected to be worse in January, not better.

Alternatively, if you are hoping to buy a house of greater value than you own, you could hold off and wait for prices to fall further.

Why do you need to get 650.

Thanks. It works the other way coming down the chain though.

Also I think because we can sell or not sell and see now hurry we have a price that it feels 'not worth moving' if we don't achieve

Homes are being bought at an average 4.2% below the asking price

In September, discounts reached their highest level since March 2019. The biggest reductions on asking prices are being achieved in London and the SE at 4.8% - while in the rest of the UK the rate is 2.8%, Zoopla said.

The number of buyers rebounded by 12% in September, but Zoopla said they still retain the upper hand as they refuse to compromise on price. Richard Donnell, director of research at Zoopla said, "Falling mortgage rates are the most likely route to bringing buyers back into the market in the next 12-18 months."

Fixed mortgage rates have been dropping amid falling market expectations for interest rates, which are believed to have peaked. Lenders have started offering 5 year fixed rates below 5% and Zoopla expects mortgage rates to drop to 4.5% in the coming months.

https://www.telegraph.co.uk/money/property/buying-selling/uk-house-buyers-biggest-price-discounts-four-years/

Personally I’d take it off altogether and relaunch in the spring , traditionally people want to move before Christmas so market drops now

OMG Kiev. I unleashed a monster!

If you're not really bothered about selling (under a certain price) then you could try a different tactic. Try putting it on Offers Over (an unbelievably good price) - say £600K - and see if that creates a market of such interest that you get multiple offers over asking - all the way up to your minimum price.

Kiev loves those Youtubers 😉

As do I and I'm pretty sure that you sneak a look on the odd occasion too! 😆

The main thing is to look on rightmove at your competition and also what is selling. Buyers now have perfect information so can see straightaway if something is overpriced. Prices are only going down of course in most areas so just because a house sold a few months ago at a certain price its likely to be less now.

well I couldn't possibly comment 😆

(in fact I do look at many sources of information and consider many opinions)

Volume is high in Sep/Oct, plus about every experts out there are predicting price sliding further over the next 6-12 months

https://uk.investing.com/rates-bonds/uk-10-year-bond-yield

If you go back to say 1990 and back into the early 80s we are not at the scary place yet, but the debt people are carrying is so much more than then! That is the scary part, the ten year runs mortgage rates and how much people can borrow decides the price of your house, drop the price now IMO. If the house was bought for less than 650k recently I dont think you will get anything like that price now but don`t be slow to get ahead of the competition, use PropertyLog to see what other sellers are pricing at for similar property.

I totally understand the thing of needing or wanting to sell for a minimum price and don't get the impatience with it. It doesn't make you entitled or mean you necessarily expect your buyer to pay whatever it is you say you need - on the contrary, discussions of the minimum you can sell for normally revolve around the anxiety that you won't be able to get it.

Buying and selling costs money in itself. If you think you know what you'll need to go forward, why shouldn't you set a red line as to how low you'll go, and stay put if you can't achieve it?

Not all sales and purchases map well on to each other in market terms. People might be relocating, or upsizing/downsizing in an area where a particular type of housing stock is in short supply, or couples might be separating and wanting to buy two smaller places, which means that the cost per square foot bought differs greatly from that of the property being sold. Or you might feel that you'd rather go into rented to avoid being in a chain, but want to be sure you can absorb any market changes in the meantime. Or maybe you want to take equity out for some reason. There are numerous possible factors that sellers may be weighing up that make sense to them, even if not to us.

Good points, I think the drop off in FTB numbers will start hitting chains soon, everyone should definitely be asking their onward purchase to reduce price at this stage IMO.

Properties that are valued correctly get snapped up quickly, unless the estate agent is crap.

My impression as a buyer at the moment is that lots of sellers still think it's 2021 and are unwilling to accept that it isn't. I wouldn't be surprised if they're being egged on to sell at unrealistic prices by estate agents that are keen to get their business, and keen to give the impression that everything is totally fine and booming when sold prices on gov.uk say otherwise.

Cant be long until EAs start losing jobs?

Didn't you post this last week too?

If you have had no viewings in the first 3 weeks (the busiest period), it's clearly over priced.
If 650K is your 'line in the sand', market it for offers over 650K and see if get any interest at this price point. If not, it's still over priced.

Lucky old you! x

I am lucky. He is a wonderful provider x

Thanks. That's why we thought maybe holding to the new year to drop the price. Because I guess people stop looking in nov/dec time and start their search again in the new year.

Interesting idea. Will bare in mind. Thanks

Good advice. The advice about trying to start "bidding wars" made me chuckle, certainly don`t waste your time with this approach.

Ok. I'm going to bite. What approach would you recommend? If the price is too high you'll get no interest. If the price is too low you'll get loads of interest. Is there another way?

This is really weird. Me and Twiggers have a thing going on, but I get notified of a response from her even when it's from someone else!

Not speaking for Crashy, who seems well able to speak for him/herself, but I would think the idea that anyone is getting so much interest at any price that it starts a bidding war is pie in the sky atm, just because of the unattractiveness of mortgage rates, downturn in mortgage approvals and general sense that the market has further to fall. (Precisely the point imo where a seller might ignore the chorus of, "It's the price, it's always the price!" and bin it all off til 2025 if they're able.) I think the point is that at o/o 650K the OP might get an acceptable offer, which is all she really needs.