property price reduction

[Administration]

we have been on the market for about 5 weeks now. we have had quiet a few inspections early on but it has quietened down now.

Our agent is suggesting that we reduce our property price to get more intrest!

I am wondering if this is normal procedure after this sort of time frame?

sharond

[Administration]

It just depends. be careful the agent is not just after a quick sale. How many people have inspected? Do you know what their feedback has been?

wildone

[Administration]

Hi wildone

We have had about 12 to 14 lookers and no mention of price.

The agent hasent given feedback from anyone saying its too dear, but now says that a few of those people have bought something and claims that they did so because the value was better?

sharond

[Administration]

Get him to prove it in black and white.

And where is your written offers.

once-bitten

[Administration]

Thats the problem ! we havent had any offers, so the agent is thinking that we are so overpriced that everybody feels that making an offer is a waste of time as it probably will be rejected.

Maybe we re too dear?? what do you think?

sharond

[Administration]

Did you set the price in the first place or did the Agent suggest the lisiting price??

If it was the Agent then he may have did this to get the listing. If it was you, then he should have told you then and there that you will be on the market for a while.

Whats the difference in $ that he wants you to drop the price

once-bitten

[Administration]

he did initally want ut to start lower about 20K but we want too get as much as we can for it.

He is now asking us to reduce it by that 20k or even 25K as he claims thats where it should be at this stage to get intrest and attract a few offers?

sharond

[Administration]

If you drop the price, there will always be offers much lower than asking price.

Then when the property becomes stale. The offers will be far and few between.

I just recently saw a home in my suburb go from 610.000 to now 550. And that didnt attract anyone as its now up for Auction with the caption MUST SELL. So with that BUyers will be in bargain mood.

once-bitten

[Administration]

Thanks once bitten,

I am worried also that if i drop it 20k-25k that the offers will come in another 20 or 30k less!

The agent is basicaly saying that the 20 or 25 k is too much of a price inflation percentage wise on the value of our place, and because his initial sale estimate was almost 40K less than our current market price this is preventing people from making an offer as they feel it would be taken as a insult.

His sale estimate was 280K-290k and he suggested we start at 299k and see what happened!

We asked him to start higher at 325k

So he is saying that most people will not offer 40k less than asking as they feel it will be refused.

Not sure if that makes sense.

The agent did also say we would be better off to take it off the market for a while than let it go stale!

sharond

[Administration]

Sometimes we have to accept that no matter what we want for our property, the market will determine what it will sell for.

Why would buyers even look at something they thought was to high anyway, its the agent showing your house to compare with others to sell the others. This is because he also thinks you are to high.

Its all part of the ploy, be very wise and think with your head.

Unless you are desperate to sell, then you need to sit and really work out what is the opition for you. Ask the Agent to drop his fee if you get a offer and play with the figures.

once-bitten

[Administration]

Thanks once bitten.

Sounds like from you are saying that i am expecting more than what the market value is, so i am sitting on the shelf!

Maybe i need to take the agents advice and make the price adjustment?

sharond

[Administration]

Hi Sharrond,

How did you go with the pricing delimma?

Did you decide to lower the price?

wildone

[Administration]

Hi Sharon,

I am currently a sales consultant in the real estate industry and I would like to give you my opinion on the matter.

For starters, having around 12 inspections is quite good for 5 weeks. This is more than enough prospective buyers to give you indication of your market value. Your agent should have got feedback from all buyers regarding the price, or their opinion on what the property is worth.

As an average, I would receive one offer every 7 inspections. I am a bit surprised that you have had this much interest and not received an offer. Are you having open houses? If so it could explain the amount of inspections and lack of offers. I am very harsh when it comes to open homes, they are the biggest trap in the industry- but that’s another story.

I would make this suggestion for you Sharon; have an independent valuer assess your property. Make sure you ask them to value the property on its market value and not its replacement value. It might cost $300 but it will give you piece of mind that your doing the right thing and not under selling yourself.

Lastly, don’t be scared of dropping your price for the sake of receiving lower offers. This is not the case. If the property is priced correctly it will sell and achieve a price close to its asking price. Buyers are more than happy to pay a fair price for a property.

Speaking from personal experience, I have sold properties for very close to the asking price, the asking price and even more then the asking price. Price the property correctly and negotiating becomes very easy!

Brian M