When to reduce house price?

[housesellin]

We are currently on the market for £625k, 3 bed Victorian semi. This is in line with all valuations, mortgage survey and recently sold properties. However, you do need to really understand the area to understand the price.

We went live 6 weeks ago and have found our dream house, they’re waiting another 2 weeks for us to secure our sale. We have had 10 or so viewings, one second viewing. All have come back with either 1) the layout (not open plan, traditional layout) 2) no parking. One wanted to offer but isn’t proceedable.

We have two viewings booked for this weekend and our plan before we got these booked in was to reduce to a guide price of £600-625k. We cannot and will not accept less than £600k, we simply couldn’t move.

Do we reduce before the viewings on Saturday as planned, on the Friday, with the hope it causes more traffic and more viewings. Or do we wait until after the viewings? The EA doesn’t call the viewers until the next working day, so we wouldn’t get feedback until Monday and if they wanted a second viewing, we wouldn’t want to delay the reduction.

I don't see the point of 'guide price' - can someone EIL5?

I think reducing it by 10-15k before your viewings take place will make people feel differently about it not being open plan. That's your wall knocking down/partial new kitchen or whatever money. They'll be looking at the house with different eyes to other buyers and it might bring previous viewers back into the fold who can suddenly see the open plan money now being feasible - might start a bit of competition.

On a personal note, if you want open plan, go and buy a faceless new build and stop messing with our beautiful Victorian homes! :)

Honestly, if you were going to do it anyway before you got these viewings and you have a house you really want, don't want to lose, and need a sale, then I would do it now.

We had our house on the market and I knew in my heart it was overpriced. Viewings but no offers. DH simply would not accept that price was the problem. So we stayed as we were. I finally convinced him to lower the price, which we did, and within 2 weeks had sold. Staying and being stubborn on price is just a waste of time. If you feel you can sell this weekend for a reduced price and you are happy to then I would go for it.

Good Luck!

I agree with the previous post. You may even start a bidding war. If you have found your dream property then yes reduce it now as you don’t have much time if you want to secure this house in the 2 weeks. You have been on for 6 weeks now if the price was competitive then you should have had offers by now.

We have two viewings booked for this weekend and our plan before we got these booked in was to reduce to a guide price of £600-625k

Also not sure what difference this makes? You're currently on at £625k already, which sort of sends the message that an offer over £600k is probably in the right ballpark. Reducing to a range of £600k - £625k doesn't really change things.

If you can't afford to accept less than £600k, you haven't really got a reduction option that's going to make any difference. You'll just have to hang in there.

Just drop it now to offers over £600K, you might get more viewers for the weekend. We've sold an offers over house before and it doesn't really make much difference, people offer what they want to offer.

Also think you should reduce the price, but not guide price, if you were going to have a bidding war and needed a guide price that would have happened already.
I would go to £610k because it might just make it more appealing to those buyers already with viewings booked and be the thing that tips the balance.

Is your agent good? I’d want the narrative to the booked viewers to be that you’re really keen on a quick sale so have dropped the price and they’re getting in ahead of all the people who might now be interested at the lower price. Generate a sense that they might get a bargain.

The problem you have is that you'd have to reduce to 600k for any new people to see the listing (because of Rightmove price bands).

Honestly, anyone with a budget of, say 615k, is not going to not view a house on at 625 in this market.

By dropping to 600, you will get offers below. But you can hope for a number of them and that they will push each other up above your minimum. Your best bet might be to drop the price tomorrow and see if there is enough demand to schedule an open house next Saturday morning. That does bring you quite close to your deadline though and you'd have to hope the offers come in quickly.

The issue you are having, that you cannot reduce below £600K does not actually mean your house is worth that …! Finding a dream house based on a hopeful price for your existing house is risky. I’m sure you know all this already but I think you are being unrealistic

Agree with this. There is little meaningful reduction you can do that will both tempt sellers in but also allow you to fulfill your requirements for purchase.

You may be lucky to get a buyer in 2 weeks. But also remember they will be looking for a good survey to complete the transaction at the price they offer.

So the probabilities are stacking up against you. Unless you are confident that your place is in absolute tip top condition and worth the money being paid then I would consider whether it was worth risking all the conveyancing fees given the relatively low chance of success.

You are on at £625 but won't consider under £600?

You do no the market is reasonably fluid to 10% of valuation normally, which is why valuations are usually set slightly high across the board (and ones set low for quick sales often get bidding wars going over asking). Which means a completely reasonable offer is anything from £562k upwards on a £625 house.

600 is only 4% under... now it is possible to get 4% or above (some people get asking or more depending on buyer/seller markets and how good the house is) but 5 weeks in its unlikely you will get an influx of asking price offers now.

Lowering the price is wise and 4% might be an incentive and open it up to others with lower budgets but do not be surprised and offended if/when you start get offers under 600 as it will be within standard range of offer on a house this price.

You are getting the viewings, so the price cant be too off. I assume you have a floor plan with the listing so viewers know the layout. I would leave the price in place, but perhaps the agent could give them a hint that you are up for negotiating if the offer starts with a six. I hope you get a committed buyer soon. This is one of the reasons we have never looked before we have sold, it’s awful when you have your heart set on something. I hope it all works out for you.

Thank you!

The reason we are reducing is to mainly tempt buyers but also to move back to the top of Rightmove.

Zoopla places our house at £625-650k valuation. We remortgaged last year at a £625k valuation which was an increase and surveyor came out.

Houses on the road sold for £575k (smaller / not as good condition) to £800k (parking and extra bedroom)

We simply won’t move if below £600k, I’m certain of the house’s value - not because I’m emotionally attached, just because that’s how it is. This is our last ditch attempt!

It’s pointless to not be realistic about pricing. The agents may have suggested a price, but if there are no offers at that price, it’s too high.

You new property might be dependent on the price you get for your current house, but that’s not something any prospective buyer will be interested in. They will offer what they think it’s worth.

What houses sold 6 months to a year ago (how long it takes to appear on past sold prices) it is no longer relative, just a rough guide. Same as what others are asking meanings nothing. You can't really know what others are currently selling for unless you are involved in the sale.

The neighbor house of the one we are buying put theres up for sale and seems to think ours sold for the 'asking' so are insisting on the same... it did not get asking though, we are paying quite a bit under the asking price.

We’re friendly with our neighbours, so we know what the houses sold for on the road in the last few months, but they were rushed through before SDLT change in April.

My estate agent was against reducing the price and because the feedback has never been about price but things we can’t change (why view it then?!) it was supported.

We have another viewing booked for next week now so that’s 3 upcoming. EA said to reduce next week now ugh.

If I see a "guide price" with a range I always take it to mean the bottom of the range is the real asking price and I'd offer below asking. A guide of 600-625 is essentially saying you'll accept 600, there's no incentive to offer a penny more than that (and plenty of incentive to offer less) unless you're in a rising market where people might start fighting for the property, which is clearly not the case here.

Usually I would say reduce the price if you're not selling - especially if you are looking for a quick sale, but if you won't consider anything under 600, then you're just wasting your time with the cut you propose. You need to either stay at 625 and have total faith that the property is priced right and desirable enough to sell in the time period you need, or just take it off totally now and not bother because you'll be reducing to a level that will only get you offers that you won't accept.

The only one who is certain about your home's value is the market.

I'd drop the price to 600K. Hope you get more than one offer in the 550-600 range. And then hope that your EA is good at the final offers narrative. Ultimately, you won't have to accept any offer.

Thank you @XVGN and @Tupster

I see a guide price the same as you. But we’ve set our line. Where we live, flats are £550k so it wouldn’t make sense. We are in an affluent area outside of London, I believe our house to be competitively priced but the market is the issue - I do think £600k would secure a sale. We wouldn’t accept £599,995 but let’s see.

ill reduce for the weekend. The three viewings booked can approach it how they want but we’ve told our EA all viewings need to be clear that we won’t accept less than the guide.

Poor timing as stamp duty now 10k more around that price tag since April. In our day and age all properties should be open plan.

I would reduce now. You need to inject a sense of competition. Reducing the price brought us a bump in interest when we needed it. And it sounds like you need it soon.

I hate open plan. We have a big kitchen with bifolds, kitchen island, bar stools, but a separate dining and living room. I like the layout and it’s traditional with all traditional features. I love our house but we’ve outgrown it

If the house is worth 600k, you should have had an offer at that or above by now or have one very soon from the upcoming viewings. If not, the current market doesn't support that price. As you say, it may be that the increased SDLT has lowered the prices in your area. If you won't sell for less than 600k, you could consider reducing to offers over 600k but it isn't really a significant price cut so it's by no means certain that it will make a difference. How are houses selling generally in the area? Do you think there is much competition for your 'dream house'?

Personally I believe if I had a budget up to say £615k in this climate I would look at £625k, doesn't mean I would offer my top budget if it wasn't worth it. I would also think if it was changed from £625k to guide price of £600k-625k that it means the seller would take nearer the lower end so not bother offering more even if I could...that only doesn't work if more than one person wants it. I guess you have nothing to lose by trying it. You know what you want and you can at least see if offers come in for that.