Sunday Thoughts
Why are so many agents now reducing property asking prices?
You might have put your house on the market after having several estate agents out to give you their opinion and advice on a marketing strategy.
You may have literally boiled your choice down to who suggested the highest asking price. This is human nature.
Have you found that your property is literally just sitting there and you’re not getting any viewings?
Is the only suggestion you are getting from your agent ‘drop the price’?
Have you realized that the only reason you chose to go on the market with them was because they suggested a higher price? And now you have realized they weren’t right after all.
Now you’re not so happy with what they have suggested about reducing your price, but you need to sell and you’ve already wasted 3 months or more chasing a price you were never going to get and you know that now.
What choice do you have? You wished you’d gone with the other agent you liked but who suggested a lower figure. Perhaps they were right after all.
You realise this one wasn’t accurate but you’re tied into this long Contract that you can’t get out of yet.
Rightmove suggests that if you haven’t agreed the sale of your property within 8 weeks then you need to be looking at your asking price.
You feel disgruntled or let down by your current agent and then you discover you have signed a Contract with a long tie-in period.
There’s no alternative but to reduce and you can’t leave the agent whose advice you have taken.
What can you do about it?
Not a lot really. You either reduce or wait until you are out of your Contract period or both.
Either way the agent has won your business and it is why it is tempting for agents to over inflate asking prices in times such as these when stock is hard to come by. It is sometimes done accidentally and for others a plan to obtain the listing and then their strategy is to reduce the price.
Did you know some agents get paid for just listing the property. Whilst others don’t get paid until they have sold it. Ask your agent if they get paid for listing as this raises the risk to you.
If you have already fallen into this trap – check how long your Contract is for and give written notice when your Contract period is up.
If you haven’t put your property on the market yet – don’t sign a Contract that is longer than 8 weeks.
That way, at least if you’re not happy you can leave.
If you are already finding yourself in this position, don’t feel embarrassed about going back to an agent that you have already had out and who you liked but went with the agent who said a higher price. They will be delighted that you have come back to them and given them a second chance.
If you’re thinking ‘but, I’ve paid for professional photography’ that’s fine, if you have paid for them you can re-use them with your next agent if you choose to.
Or, if you’re thinking ‘ but I have already paid a fee up front’ ask yourself why the agent asks for a fee up front?