Price Reductions are a current market reality...
Like many buyers, I log onto Rightmove each morning to find out what’s happened in Guildford’s ever-changing property market over the last 24 hours: which houses have gone under offer and what new instructions have been added. However, as we edge into autumn, we’re seeing a significant rise in the number of properties marked Reduced Today and this is something we need to address. While this isn’t a new phenomenon - even in a busy market there’s always been a smattering of them - the post-Brexit landscape means they are now outweighing new instructions marked Added Today on a daily basis.
It’s fair to say a Reduced Today tag is something all sellers would rather avoid. Human nature dictates that buyers will instinctively navigate towards brand new instructions rather than a house that’s been on the market for weeks that, it appears, no one else wants.
So how does one avoid having to reduce the price in the first place?
The key is to get an accurate assessment in the first place but with many large corporate agents encouraging their staff to get a high volume of houses onto the market, some of the valuations being bandied around are not just optimistic but, quite frankly, silly.
And buyers are not daft. There is so much information freely available to anyone with access to the internet: what houses have sold for in the past and analysis of market trends, buyers are better informed than ever.
Our advice to sellers is always the same; while it makes sense to seek more than one valuation of your property, it is key to ask the agents valuing your home how long they have worked in Guildford and what directly comparable properties they have sold recently. Finally, ask them what research they undertook to justify the price they have given you. Don’t be afraid to ask.
If you do have to reduce the asking price of your property, ensure, where possible, that your house sits in a new price bracket online, as this will allow an entirely new set of buyers to see it. You can see what the price bands are simply by looking on Rightmove.
And be positive; a change of price provides a good opportunity to refresh the marketing literature of your property. Consider uploading new photos and including some additional points to your sales particulars to make your property really stand out. Finally, don’t be afraid to change the price – the last three houses we have reduced on have all sold at, or very close to, the new asking price and swiftly too.