Newspaper article The Queensland Times (Ipswich, Australia)

When Should You Drop Your Price?

Newspaper article The Queensland Times (Ipswich, Australia)

When Should You Drop Your Price?

Article excerpt

with REIQ's Felicity Moore

YOUUR home is on the market, the ads look good on the listings portals and the signboard is huge in front of your home - but it's been a while and you haven't had any serious offers. Should you drop your price?

Here are a few simple signs that your home is overpriced and you should consider a price adjustment.

No calls - what's wrong?

If you're on the market but receiving no enquiry and no inspections (and therefore not a nibble of an offer) you're probably at least 10 per cent over the market price. Yes, there are some exceptions to this rule. If you haven't advertised the home or your agent is difficult to reach, that'll make it hard to get an enquiry. And if your property is something genuinely unique that will only appeal to a small slice of the market it will take time to find that right buyer. But provided you haven't kept the sale a secret, and have done at least the basics of promoting it, you should be getting inspections.

Why won't buyers take a look anyway, even if they think the price is well over the odds?

Buyers are like the rest of us - time poor. They have a world of choice and your place only gets them off the couch on a Saturday morning if it's at least a bit compelling with its appeal. This 10 per cent guide isn't something we've dreamed up, but a common industry guideline that's proven its validity over many years.

If you can only hear the sound of crickets at your open home there's a good chance you need a 10 per cent price adjustment.

Lots of enquiries but no offers

So maybe you're getting inspections. There's the occasional promising nod or comment about bringing a partner back, but nothing eventuates.

This is an indication you may be 5-10 per cent overpriced. Consider this: very few buyers who come to an inspection are really "tyre kickers". …

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