EA telling us to reduce the price

[justasmalltownmum]

found a house we liked back in April, so listed ours and within about 3ish weeks had 2 offers.

One for asking price and one for 5k less.

Got into a chain and the chain collapsed. So we said we are no longer selling as the one we wanted is no longer available. It was that or nothing, so EA took ours off the market.

Start of August the original house we wanted has come back to us, so now need new offers on ours. So EA relisted ours. But it has been terrible second time around.

lack of viewings - EA said due to August/ summer holidays
lack of offers - people saying they would offer but it would be 20-30k below asking

now EA is saying to lower the price by 25k.

thoughts? Advice? Any experiences?
Has the market changed so much in 4 months?
should we wait until September for it to pick up? But by then we won’t be new to market.

thanks!

say no and wait

Thankyou for replying.

The market has softened. Either hold out or reduce. Last time I sold before I bought which made the process easier - yes I had to put my stuff in storage and rent first six weeks but I didn’t want to lose my sale and it put me in an excellent position to buy as I had previously lost out to a cash buyer before I had sold (though I was under offer).
I tried to sell a flat last year - the one above had just sold with one less bedroom and I put mine in for a bit more but eventually reduced to the same price but after a few months withdrew it. The market had weakened and I wasn’t prepared to go below a certain level. Has the house you like also been reduced? Maybe you can make up the difference of selling for less by buying for less.

No the one we like hasn’t been reduced.

Do you think the market has softened because it is August and will pick up in September? (We relisted first week of August).

I would say yes the market has changed a lot in the last 4 months - and that its likley to get worse not better in the short term. If you really want to move I would take the agents advice - then once you have an offer try to renegotiate the price on the house you are buying and spread the price change. If they also really want to move you might get it across the line that way.

Think it depends on how much you want this house. Do you think your house is on at a fair price? It’s likely the house you want will probably accept an offer if it’s back on the market. Depending on how much I wanted this house I would probably wanit until September.

Unfortunately a lot of houses have been overvalued
And the market is very, very slow people don't want to commit to big mortgages with so much uncertainty. I think they may be correct to reduce, that or hold on for a few months and then reduce if no interest.

Can you afford to purchase the house you have your eye on if you sell your's at the reduced price? It sounds like you only want to move for this particular house, so you may need to sell for less to secure a quick sale.

Why is the other house back on the market?
Was it valued lower than the agreed price?
That would be my suspicion.

£25k less than what asking price?

£25k off £1m obviously yes

£25k off £500k still yes in this market

£25k off £200k yes if the house you're buying is your dream home, or you're determined to move in the next couple of years

£25k off £100k even if the house you're buying is your dream house, or you're determined to move in the next couple of years, I'd still start with 10k off.

If people want to move with children and schools they want to be in by Sep, not moving half way through October. Maybe thats a factor?

The market has definitely softened.

i would offer less on the origin house so I could reduce my price.

If the market has changed in the last 4 months for your house, they have also changed for the house you want to buy. If the estate agent feels 25k reduction will get yours sold, reduce your offer on the other house by the same.

Not sure there will be a meaningful pick up in Sept, people looking doesn"t translate to sellers getting their asking price as buyers can no longer get the cheap mortgage debt, you should drop 25k now if you want to sell, get ahead of other sellers who think they know better than the market.

Can you go to the agent of the house you want? If you can go on the market with them it’s in their best interests to make it work! Two lots of commission.

The market has softened because there is upward pressure on borrowing rates and other COL expenses.

That sounds most likely IMO.

Updated to add: the original house we liked has come back to us as the offer they accepted broke the chain. We were the other offer so the agent has come back to us. They won’t budge on the price.

No they are in a diff town. It wouldn’t work for them to sell a house in another town.

About 18 months ago we were in a chain and it collapsed. We relisted in order to try and keep the house we wanted to buy. First time round we had an asking price offer, second time we had to accept £15k under. Galling but it’s the only way we could keep our onward purchase - luckily we had float to cover the short fall.

You either need to hold your nerve and wait - but accept you may not get the house you want. Or you need to reframe your mind and accept a lower price (whilst also being in the financial position to make up the shortfall).

We can accept a lower price by about 10k ish which the EA knows. But people are already offering below asking by 30k ish. If we lower the price, I think they will offer even less rather then offer the lower asking.

I have family looking and are planning low offers. Cash buyers equally having sold low.

Most buyers check sold prices of similar houses so the ea knows what sold prices are looking like. If you sell you are in a stronger position to negotiate. This is price driven but I would not expect a further negotiation of another price drop once the reduction is in operation.

It’ll pick up in Sept with people looking & fresh houses going on for sale. I doubt it’ll pick up in terms of people suddenly deciding to pay more.
How much is your house on for?

Give them time, they probably won"t get offered what they want now.