It’s not easy to get the right asking price for your home, especially in certain parts of the country where comparable homes that have recently sold are scarce. Sure, you can enlist the help of a real estate agent. But in Malaysia, the real estate agent will more often just listen to your wishes then give you an honest opinion on the pricing.
So you put your home online and call it an official listing, asking what you deem to be a fair price. And then the worse things happen… No calls, no visits, nor offers… So what’s next?
In this article, you will learn some of the top ways to know that it is, in fact, time to lower the asking price. Are you ready?
Identify these key points to start lowering your asking price.
1. Your property has been on the market for a VERY long time.
So, this one might seem fairly logical, but don’t underestimate what really happens in the current market. People simply don’t do anything and just keep waiting. Depending on your market, homes can sit on the portals for long periods without selling.
In general though, if your home has been on the market for more than a couple months and you just aren’t getting any bites on that bait, it may be time to seriously consider lowering your asking price to start getting some movement in your property
If your home has been listed for a while and you are experiencing one or more of the following issues, start considering to lower right away.
2. People do visit your property, but don’t make any offers.
Are people visiting your house, but nobody is making any offers?
Although your asking price is just that—what you’re asking—the number will influence how people make offers. This may surprise you, but people don’t like to make deep low offers, simply because they don’t want to offend the seller. When a seller asks too much that is not in line with the potential buyer’s expectations, they will simply pass on it.
My best advice to sellers would be to drop the price immediately after 3-4 showings without an offer.
3. Your property agent has given you the advice to drop the price.
Was your agent recommending you list it at a lower number to begin with? Did a month or two go by with no offers, all while they were recommending to lower your price?
For many sellers, it is not easy to trust their agent. But remember, an agent dropping a price is also dropping his commission.
They earn their commission based on a percentage of the selling price. So they will not tell you to drop if they don’t believe it’s really necessary. Listen to your agent if he has advised you to drop the price multiple times.
4. Buyers have acknowledged the price is too high
Many property agents/negotiators nowadays get feedback from each potential buyer who attends a showing of your home. This feedback can be about things as whether or not they are interested in your home to as major as what they think of the condition and area.
A valuable piece of information is what the potential buyer thought about the asking price after seeing your property.
If many buyers are going through your property and many of them are coming back and telling you that your price is too high, it may be time to listen though.
5. Other similar properties are selling for less.
This one should be pretty straightforward for any property agent to see, but you as the seller should be paying attention too. If there are comparable properties in your area that are selling for less than what you are asking, why would someone want to buy yours at a higher price?
If you feel your property is special and has a better color than the competition, think again. The potential buyers don’t care, because the price will be too big of an influence on their final decision.
6. Bigger & Nicer properties are selling in your price range.
This is another huge sign that you should lower your asking price today. If there are properties in the area selling around your asking price, that can be a good comparison. The problem arises when these houses are either much nicer ( better materials, well maintained, nicer floors, etc.) or much bigger.
If you recognize this in your area, you need to definitely consider lowering the asking price of your property to attract buyers that otherwise would pass it by.
Don’t wait, take action!
Unfortunately, just because you are asking someone to pay a certain price for your property, doesn’t mean that potential buyers out there are going to be willing to pay it.
If you find yourself in any of these situations, then you should take a long, hard look at adjusting your asking price.
Of course, if you aren’t that keen to get your property sold, and you think your asking price is fair, then just play the waiting game.
The right buyer (read: imaginary buyer) will hopefully come along. But a large number of homes listed for sale for over 6 months at any given time tells us that it is much wiser to just swallow your pride and lower that price.
Good luck! Happy selling
This article is contributed by; Coach Taco Heidinga, Co- Founder of Propcoach.