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Posted: Wednesday 1 September 2010
Realism will sell property today: blind optimism won’t
For buyers; a price reduction is all about opportunity. Reducing an asking price brings many more buyers into orbit; it undercuts the competition; it saves time in selling and it lets the seller move on in life instead of living in limbo.
A better word than 'reduction' would be 'correction'
If a retailer can’t sell some stock then it goes on sale. If the cost of commodities like oil or gold edge too high to attract buyers then the prices will come down until they do. These are market forces and the housing market is just as affected by these pressures as any other area of commerce.
Comments
Steven Hornby replied on 1 Sep 2010 at 14:39As one of the estate agents for Bell Ingram covering most of Argyll including the majority of the mainland and most of the islands I have to agree with what Nick is saying. Whilst most sellers always have the magic pound sign in mind following a market appraisal, that figure once floated is generally difficult to reduce whether to try and achieve a sale or tailor it to the current market place. "Corrective repositioning" is certainly worthwhile but only if it suits the vendor's circumstances. No point in bringing a price down if a) it doesn't make any difference or b) it doesn't help the client to sell. Suggesting a price change is an easy trap to fall into, especially when the initial marketing strategy hasn't had the desired effect, but I try and explore all avenues before getting to that. Of course if a vendor needs to sell and a quick sale is necessary then do what is needed just don't jump the gun! Argyll sales are predominantly holiday homes so most vendors in my sector are quite fortunate in that although they would like to sell it isn't always a necessity. At the end of the day everyone has a different MO and we as agents take this into account when analysing people's needs. As long as there are willing buyers and willing sellers, the banks keep on lending and the market keeps moving then we will continue to achieve sales.