Your search results

When Should You Consider Lowering the Price of Your Property That Has Been on the Market for Months?

Posted by Jayson Ang on December 3, 2024

| All, Blog Posts, Opinion, Selling Tips

| 0

TLDR

Selling a property can be challenging without the right price strategy. Adjust your asking price to attract more buyers and avoid long market stays. Overpricing can deter potential buyers, but minor reductions can improve search visibility. Regularly reassess your listing’s age and market trends to stay competitive. Establish a clear timeline for price adjustments to avoid impulsive decisions. Be mindful of policy changes like ABSD rates, which can impact buyer behavior. Acting swiftly on initial offers might prevent lower subsequent offers. Strategic planning and market understanding are key to securing your dream property.

After what feels like an eternity, not a single soul has presented you with a tempting offer. And let’s face it, you can’t move on to your dream property until this one is off your hands. Perhaps it’s finally time to take a leap of faith and reduce your asking price?

We know, in a market where replacement properties cost a fortune, it’s hard to let go of your desired profit. But consider this – settling for a slightly lower amount now could mean the difference between securing a more ideal home or no sale at all.

Let’s see what advice some seasoned agents have for those moments when it’s necessary to adjust your expectations.

1. Adjust Downward to Align, Despite Your Aspirations

Starting with a steep asking price is a common pitfall, as it can immediately turn off potential buyers and discourage any further negotiations. Yet, some sellers insist on aiming for the stars and refuse to budge, unaware of the lost opportunities.

For instance, a recent case involved a two-bedroom unit sold by a colleague in 2023. Against his advice, the seller stubbornly set an asking price 20 per cent higher than similar units in the condo. The first two interested viewers never returned, likely assuming their offer would be dismissed without consideration. Finally, the seller relented and agreed to match the prices of other listings.

Miraculously, within a month, the condo was snapped up at a price close to the original asking, thanks to shrewd negotiations. Lesson learned: starting too high can ultimately lead to settling for less.

2. Consider Adjusting the Price for Better Search Visibility!

In today’s market, the majority, if not all, of home seekers rely on property portals rather than the traditional newspaper classifieds to find their dream abode. If you’ve dabbled in these portals, you’re well aware of the plethora of filters at your disposal – from leasehold or freehold options to specific construction dates. And among these filtering options, the ever-popular filter for price reigns supreme.

But here’s something to consider: if your flat is listed at $505,000, but a potential buyer sets the filter to $500,000 or below, your listing may be ousted from their search results. To increase your chances of being seen, it may be wise to adjust your price by a mere $5,000 to align with the search system.

(On a related note, for all you buyers out there, it might be beneficial to set the filter slightly higher – say, at $550,000 if your budget is $500,000. This way, you won’t risk missing out on fantastic listings that may just be a smidge above your set limit).

3. Adjust Pricing According to Listing Age

Navigating through property listings can be tricky, especially in smaller developments with limited transactions. Often, the only other unit available in your project is either significantly larger or smaller, making it difficult to find a fair comparison. In such cases, it may be more beneficial to look at units of similar size in nearby projects. However, it is ideal to find close comparisons to your unit, and take note of the “listed on” date of these properties.

According to M, if your listing is one of the oldest in comparison, it could be a sign that your asking price needs to be adjusted. This can also create assumptions among potential buyers and their agents, leading to lowball offers.

It is important for agents to keep track of the average days a property stays on the market, specific to the property type and area. This information can serve as a benchmark, and if your listing exceeds this average, it may be time to consider lowering the price. Discussing this with your agent beforehand can prepare you for any necessary adjustments.

4. Implement a Strategic Lowering Approach, Not Intuition!

Working closely with HDB upgraders, I’ve noticed a common mistake pointed out by my colleague – one that plagues those who attempt to sell their own flat without proper guidance. It’s the failure to establish a clear timeline for price adjustments.

When our clients entrust us with their sale, we carefully assess their time frame and strategize accordingly. If there’s no response after a couple of weeks, we make a calculated price reduction. And if still no takers, we adjust once again, and so on.

But for those who brave the selling process alone, they often rely on their gut feeling. This ad-hoc approach can be taxing and lead to impulsive decisions. Instead, having a structured timeline in place can help alleviate the stress and guide rational choices.

Of course, this timeline is determined by various factors like ABSD remission (if purchasing before selling) and competition for a new property. While there’s no one-size-fits-all formula, it’s crucial to remember that the shorter your runway, the quicker you may need to adjust your price.

5. Decrease in Asking Price After Policy Adjustments

Deciding on whether or not to lower the price of a property can be a daunting decision, as the timing of a policy change, such as an increase in ABSD rates, can be uncertain.

While there may be a desire to hold out for a higher price, particularly after viewings have taken place, it is important to pay attention to the level of interest after the policy adjustment.

In some cases, it may be wise to lower the price before the situation deteriorates. According to ST, this was the case for one of his clients during the July 2018 cooling measures.

“Following the rise in ABSD rates, many potential buyers chose to adopt a wait-and-see approach. Despite receiving an offer slightly below their desired price, the seller refused to budge. However, as time passed and interest dwindled, they were forced to settle for an even lower offer in order to proceed with their own property purchase.

In hindsight, had they accepted the first offer, they would have been in a much better position. Thus, it is sometimes necessary to readjust our expectations before things worsen.”

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

Mandarin Top 5

5 Tips : How To Invest In Singapore Property Without Losing Sleep Over It

Jayson Ang – June 18, 2024 –

Investing in Singapore's property market can be a lucrative venture, but it's important to approach it with caution and a...

Mandarin Top 5

Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market

Jayson Ang – December 23, 2024 –

Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...

Mandarin Top 5

The 5 Secrets To Successful Singapore Property Investing Revealed

Jayson Ang – July 4, 2024 –

The vibrant property market in Singapore has attracted numerous investors and speculators looking to profit from the nation's thriving conditions....

All Buying Tips Top List

Tips for Choosing the Home of Your Dreams

Jayson Ang – December 26, 2022 –

TLDR Decoding the Singapore property market can be challenging, but understanding key factors like property size, location, and lease tenure...

All Buying Tips Opinion Selling Tips

Discover the Optimal Timing to Invest in Singapore Real Estate: Unveiling Historical Insights

Jayson Ang – August 1, 2024 –

TLDR When considering the best time to buy or sell a property in Singapore, historical data analysis reveals key insights....

All Blog Posts Buying Tips

Discover What Else You Can Focus On Beyond PSF – Here’s How!

Jayson Ang – July 17, 2023 –

TLDR When considering real estate investments, factors like property size, location, and PSF play crucial roles in determining affordability. Smaller...

Mandarin Top 5

Top 5 Tips : How to Choose the Best Property Agent in Singapore – Insider Tips and Strategies!

Jayson Ang – September 30, 2024 –

Choosing the right property agent in Singapore can be a daunting task, especially with the plethora of options available. A...

All Buying Tips Opinion

I Regret Buying A DBSS: 5 Homeowners Share Their Biggest Regrets

Jayson Ang – January 16, 2024 –

TLDR Singapore's DBSS scheme faced challenges such as design flaws, developer responsiveness issues, and restrictions on selling. Residents reported various...

All Blog Posts

Singapore Private Residential Market Outlook 2023

Jayson Ang – January 8, 2023 –

TLDR The Singapore residential property market has shown resilience in 2022, with price growth in both private housing and HDB...

All Buying Tips Opinion Selling Tips

3 Winning Strategies for Skyrocketing Your Property Market Profits (Including Real-Life Success Stories)

Jayson Ang – August 21, 2024 –

TLDR In the dynamic property market of Singapore, maximizing profit is key for sellers and investors. Three essential strategies stand...

Mandarin Top 5

Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market

Jayson Ang – May 8, 2025 –

Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...

All Buying Tips Opinion

Pitfalls of Owning a Boutique Condo: 5 Insider Insights You’ll Wish You Knew Earlier

Jayson Ang – May 19, 2024 –

TLDR When considering boutique condos, be mindful of potential drawbacks such as dominating families influencing rules, lack of privacy due...

All Buying Tips Opinion

Discover Affordable Executive Condos in 2024 Starting at $560,000

Jayson Ang – October 23, 2024 –

TLDR The Executive Condos (ECs) offer affordable options compared to private properties in Singapore. Despite price variations, most ECs remain...

Mandarin Top 5

Top 5 Singaporean Dishes to Try

Jayson Ang – July 30, 2024 –

Singapore, a melting pot of diverse cultures and flavors, is known for its rich culinary heritage. With influences from Chinese,...

All Blog Posts Buying Tips Opinion Selling Tips

Should You Keep Your Resale HDB Flat When Buying a Private Property? 5 Key Factors to Consider

Jayson Ang – November 3, 2024 –

TLDR In Singapore, owning both an HDB flat and a private property has become complicated due to factors like Additional...

Mandarin Top 5

Top 5 : Dangerous Ideas Singapore Property Investors Have

Jayson Ang – February 19, 2025 –

Investing in property, particularly in a thriving market like Singapore, can be an enticing prospect. However, it's not without its...

All Blog Posts Opinion

How Can Real Estate Investment Help You to Combat Inflation?

Jayson Ang – January 28, 2023 –

TLDR When it comes to real estate investments in Singapore amidst rising inflation rates, consider strategies such as capitalizing on...

All Blog Posts Buying Tips

A Beginner’s Guide to Homebuying: How to Choose the Perfect Property

Jayson Ang – May 20, 2023 –

TLDR When considering property investments, understanding your motives is crucial. Factors like accessibility to amenities, remaining lease, transaction history, rentability,...