lower the price of a property

Strategic price adjustments
When should you lower the price of the property?

Guide - When to lower the price of a propertyNever lower the price without speaking to a professional! You should note that!

If you want to sell your property, at some point you will have to state your idea of the purchase price. We deliberately say "purchase price idea" because, strictly speaking, it is not a price at all. The price only comes about when an interested party is willing to pay this price for your property.

So you have advertised your property together with an idea of the purchase price in the newspaper and on the Internet. Interested parties may have already contacted you, and you have also carried out a few viewings. But so far no one has been able to make a purchase. Have you ever thought about what you will do if you remain without buyers?

Surely you have already thought about correcting your purchase price downwards. But when is the right time for this? In this guide, we would like to bring you a little closer to the problem of reducing the purchase price.

supply and demand

Even if many real estate sellers do not 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 your favorite beer is sold by many stores in your area: What could motivate you to buy the next case in store B and not in store A? Price would certainly play a big role in your decision making. The shopkeepers know that too, and that's why they keep making special offers so that when there's an oversupply of beer, customers still buy in their shop A.

It's the same in the real estate business. If there are currently many properties for sale that are comparable to yours, or your property is significantly more expensive, you should consider whether it is not time to offer your property a little cheaper. This would make your property competitive again. Real estate buyers in particular make sure they get as much bang for their buck as possible.

You must have sold by a deadline

As a rule, time is running against the seller in real estate transactions. Many sellers have already bought a new property, and so that the follow-up financing does not collapse, they are dependent on having sold their property by a certain date.

If you have been advertising your property for some time without success and Day X is fast approaching, the time might have come to adjust your purchase price downwards. Do this in good time so that there is still enough time to actually find a buyer. Patience is often called for 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.

markets change

What is constant these days? Nearly nothing. The real estate market is also in constant flux, and prices are determined by supply and demand. Semi-detached houses are in demand today, and that may or may not change next month. Of course, all of this has an impact on real estate prices.

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

Expert advice from the real estate agent

If you hired a real estate agent, you probably did it because you need someone you can trust to sell your property. If your real estate agent proposes a price reduction, you should listen carefully to the rationale and give serious consideration to the move.

Real estate agents know the business like no other, and above all they know what interested parties are currently willing to pay for it. If you've trusted a real estate agent to the point of hiring them, you should also trust them to give you good advice.

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