Am tempted to do a big price drop to get ahead of the market, silly or smart?

[woodenchair]

Our house has been on the market since Easter, we've had about 6 viewings but no offers. It started off at 350k, which at the time it was worth, but like the rest of the country nothing is moving. About 3 weeks ago we dropped it to 330k on advice of estate agent to get some interest. It did, but again no offer

We know that we will have to drop again, the question is now much and when. DP thinks we should try to get ahead of the market and drop by another 30k now, I think we should be more cautious.

Anyone got an opinion on how low they think things will go?

We had two estate agents round, and one was filled with doom and gloom. I think it can depend on your area - around here we have really suffered, and would be lucky to get what we paid for it two years ago. But I think that you have to weigh up the maths and also how it appears.

If you are seen to constantly be dropping it little by little, week in week out, then you'll never get a serious offer as people will just wait for you to drop it again before offering. IMHO one more price drop, line in the sand, no more, is probably a good plan. Depending on what you can afford obviously.

We were told that if we didn't need to sell, we should wait around two years.

Smart - if you really want/need to move. Unless you are moving to a more expensive property. If yes, wait. Say prices drop 50% - 50% of your current house will be less of a hit than 50% of the more expensive house you are hoping to buy).

It depends on the particular market in the area and for that type of house. Were the 6 viewings serious viewing ie they already had offers on their property? If so does your agent know which properties they did ultimatley offer on - you might be able to get decent feedback. In this market a good agent should know all the properties in the area and which estate agents are handling each.

If yours is a sellable house and you drop too soon then what in theory should happen is that you will have more than one bidder which will drive back up the price. But if your 6 viewings were just people doign so out of curiosity, or without having offers themselves then I'm not sure that a single sudden price drop will help you much.

I don't think that they were all serious, one had definitely been coerced into coming and didn't like it immediately, but she was up front and told us straight away.

The plan is to move into rented until everything has bottomed out, then buy a plot to build on. We know we've left it too late to maximise the amount of profit to be made, and it's something that we already regret, but it would be a shame to lose it all (we bought 5 years ago).

Last night I was a bit nervous about doing it, and dp said i was being greedy, but now I think he may be right and if we have any hope of selling then we need to make a bold move.

Good idea I think at least 35% down by xmas 2009.This is based on 10 yrs buying and selling and I sold up last summer after a friend showed me some graphs which took me a while to understand.I had been renovating for yeras and my last house rose by 50% in 14 months and I sold to rent and it has defin itely paid off.At 300k you will sell probably as it will look a batgain while other properties stick at silly prices.Better than gettong 250ish next year.Houses which gradually chase the market down are viweed suspiciously by viewers

Easters not a long time but then ime most houses that are going to sell at the offered price do go quite quickly. The 50k drop (in total you are talking about) is actually a bit less that the 20-25% drop that the doom mongers are talking about so actually could be quite a smart move. We undershot the market a few years ago and got three offers in two days. We then did blind bids and moved the price up 10k! so going to low does not need to be that risky

That is true you amy get a few offers.BTW I don't think the truth is doom mongering!Prices in relaion to wages have been rdiculous but the banks have lent regardless this money is not available now and is better to sell at a reasonable £ to a sure bet than to over price and the buyer can't get the mortgage.