Reduce the price of a property

Never lower the price without talking to an expert! You should bear this in mind!

If you want to sell your property, you will have to state your asking price at some point. We deliberately say "asking price" because, strictly speaking, it is not yet a price at all. The price only comes about when a prospective buyer is prepared to pay this price for your property.

So you have advertised your property in the newspaper and on the Internet, together with an asking price. Interested parties may have already contacted you and you have also carried out a few viewings. But no one has yet been able to persuade you to buy. Have you thought about what you will do if you are still without a buyer?

You have probably already thought about lowering your purchase price. But when is the right time to do so? In this guide, we would like to give you a little more insight into the issue of reducing the purchase price.

Supply and demand

Even if many real estate sellers don't want to admit it: When selling a property, the laws of the market apply. Supply and demand play a major role in these laws.

Let's assume that your favorite beer is offered by many stores in your area: What could motivate you to buy your next crate at store B and not at store A? The price would certainly play a major role in your decision. The store owners know this too, which is why they are always running special offers so that customers will still buy from store A if there is an oversupply of beer.

It's the same in the real estate business. If there are currently many properties on offer that are comparable to yours, or if your property is significantly more expensive, you should consider whether it is time to offer your property at a slightly lower price. This would make your property competitive again. Property buyers in particular are keen to get as much for their money as possible.

You must have sold by a key date

In real estate transactions, time is usually running against the seller. Many sellers have already bought a new property, and to ensure that the follow-up financing does not fall through, they are reliant on having sold their property by a certain deadline.

If you have been advertising your property for some time without success and day X is getting closer and closer, the time may have come to adjust your asking price downwards. Do this in good time so that there is still enough time to actually find a buyer. Patience is often the order of the day in the real estate business, but if the bank is breathing down your neck, it can make sense to act quickly so as not to jeopardize the success of the project.

Changing markets

What is constant in this day and age? Almost nothing. The real estate market is also in constant flux, and supply and demand determine prices. Today, semi-detached houses are in demand, and next month that may or may not change. All of this naturally has an impact on real estate prices.

If your property is currently on the market and you notice that prices are falling, you should consider adjusting your asking price as well. Even if it's painful, if your asking price is way above the market price, buyers will have more difficulty finding the money for your property. Why is that? Quite simply, most buyers need financing to purchase a property. The property serves as collateral for the most part. In this case, however, the lender will insist on more collateral because your property is well above market price, and many buyers cannot afford this collateral. It is best to ask a professional real estate agent what is a fair price for your property.

Expert advice from a real estate agent

If you've hired a real estate agent, you've probably done so because you need someone you can trust to sell your property. If your estate agent suggests a reduction in the purchase price, you should listen carefully to the reasons for this and seriously consider this step.

Real estate agents know the business like no other and, above all, they know what potential buyers are currently willing to spend. If you have trusted a real estate agent to the extent that you have engaged them, you should also trust them to give you good advice.