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Wed 22 May 2013
No I am not referring to the 1980’s game show .......I am of course referring to residential property asking prices and in particular, asking price reductions.
Price reductions are somewhat of a taboo in the estate agency world. If I had a pound for everytime I‘ve heard “we don’t want to reduce the price but we will take an offer,” or “If we drop the price people will think that there is something wrong with the house,” then I would be a very rich man. The truth is that here on the ground we have found that buyers now approach the process of buying property very differently than they have done in years gone by.
There is no doubt that we find ourselves in a buyer’s market. The vast number of potential purchasers who can proceed at present will scour every inch of their target market area watching, educating themselves and waiting for just the right property at just the right price (in their perception) before they will even take the step to physically view properties of interest. In reality, should a price reduction bring a property on Mr or Mrs Buyer’s watch list into what they perceive to be the correct price region, then they might just pounce on it! Likewise a reduction might bring a property that they had not even previously seen to Mr or Mrs buyers attention. With this in mind a price reduction may not seem like such a bad idea after all!
“If estate agents got the price right to start with then there would not be the need for price reductions,” I hear you say. If only it were that straight forward. We find ourselves in an ever evolving market and asking prices have become less of a guide as to what a property is worth and much more of a tool to get interest in any given property. It is therefore important that asking prices evolve with the market, after all, property is only ever worth what someone will pay for it.
Here at McCartneys we try to take the stance of prudent pricing in the first instance and advise people not to be lured in by the agent offering the biggest asking price and lowest fees. In a difficult market you need an experienced, professional and proactive agent working for you to achieve the very best results on your behalf.
We have to act on what the market is telling us and sometimes inevitably this means altering asking prices. There is no such thing as an asking price which is too low as the more competitively you pitch the price the greater the level of interest you will receive giving yourself the very best chance of achieving the best price. On the flip side an asking price which is too high will result in no interest at all so if you need to.........come on down.......until.........the price is right!
Tom Carter - Welshpool Office: 01938 53100