1-Bed Price Reductions
A buyer’s market is simply where there are more properties for sale than there are buyers in the market.
Buyers know that they have a whole host of potential options and can afford to put in offers below the asking price.
A seller’s market is when there’s a limited number of properties for sale and there’s lots of buyers that are interested.
That way, a seller can justify a high asking price.
It’s as simple as that!
In a buyer’s market, some sellers blame the estate agent and in the same breath, some agents then blame the seller for insisting that their property was marketed seemingly above fair market value.
If you are in a buyer’s market and you don’t have to sell right now, then don’t!
Unless, of course, you have found your dream London property that you can purchase for a good price…
Then, it could make sense!
It’s important to look at what is happening with other listings, because ultimately they are what potential buyers will be comparing your property to.
Look at aspects such as days on the market and if and when they have reduced their price and by how much.
If you do have to reduce the asking price of your 1-bed property, reduce it by at least 10% to show that you are serious about selling - anything less than this doesn’t seem like a big jump or change to viewers.
It is better to reduce it in one chunk that to continuously reduce it by small margins.
Also, if it is a downward market (where prices seem to be dropping) you want to essentially ‘beat the drop’ and get ahead of the market.
Look at your 1-bed property with a fresh set of eyes or ask someone who you trust (and who will be 100% honest with you) to give you feedback on it, as if they were a buyer.
“Look at aspects such as days on the market and if and when they reduced their price and by how much.”
In fairness, your estate agent should be able to do all of this, too.
One thing to make sure is not happening, is to make sure that you are not at any viewings…
It puts buyers off and they feel like they can’t be honest.
You could speak to the estate agent and see what the latest is with regards to the marketing of their property.
Questions to ask include aspects such as:
How many clickthroughs has your 1-bed property had on the online portals?
How many detailed viewings has your 1-bed property had on the online portals?
What feedback has the agent received from viewers?
What would each viewer offer, even if it is well below the asking price (a good agent will get each viewer’s hypothetical offer)…?
You should always price your 1-bed property smartly within the Rightmove, Zoopla or other online portals price bands.
Talk to your estate agent…
Trust your estate agent…
Work together to come up with a solution and make a plan going forwards…