What to do if you need to drop your asking price

Sometimes, when a property has been on the market for some time, sellers will consider dropping the asking price. It is not ideal but if the seller and the agent have run out of ideas, it is often the next step.

For those who decide that dropping the asking price is the right move, here are some tips:

Ask why you need to reduce – speak to your agent about why it might be necessary. Presumably the original valuation was based on the market in your area, so you need to know if the market has changed or whether the valuation was misjudged.

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Avoid dropping less than 10% – Dropping your price any less than 10% won’t make enough difference to garner new interest. If you want your property to be noticed by a fresh set of buyers, you will most likely need to reduce by at least 10%. For help from estate and Letting Agents Cheltenham, visit Me and You Estate Agents.

You should also avoid continuously making little reductions as this will raise suspicions who may start wondering what is wrong with the house. Multiple drops can look like a property that is losing value and buyers will be put off by this. It is better to offer just one significant reduction and leave it at that.

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Ensure that you leave yourself enough negotiation room – Generally, sellers will receive around 95% of their asking price so bear this is mind when reducing your price. This will affect the overall amount you get, to the point where you could be losing around 12% of the original asking price.