Everyone wants to achieve the highest asking price possible. This is not necessarily greed, but the necessity to release capital to allow the seller to buy another property, pay back debt, or reduce their mortgage loan.
Securing an asking price offer in a buoyant market is more achievable and sometimes, although rare, an over asking price offer should there be more than one interested party.
However, achieving an asking price offer in a lacklustre market is trickier. A glut of properties on the market gives buyers more choice and negotiation power while leaving sellers in a weaker position.
Accepting a lower offer is dictated by personal situations and the urgency to access capital. It will also depend on the market and where the demand lies as if most buyers are securing a property below the asking price, why would they be motivated to pay the asking price for yours?
This is when working with a good real estate agent is key. A knowledgeable real estate agent should have their pulse on the market to advise what is an achievable price, how much people are negotiating, and whether it is worth accepting a lower offer.
Should a property have had numerous viewings but no offers, this is an indication that the price is too high, and accepting a lower offer is the right tact.
Request feedback from viewings from the real estate agent to ascertain if there is anything to do to generate more interest. Buyers tend to be short-sighted and put off by defects that can be quickly and cheaply fixed.
It could be something as small as a tap that drips or a musty smell in an empty property, both are superficial but might leave the buyer wondering if these are hiding bigger and more costly works like bad plumbing and pipework.
Another point to consider is the cost to leave a property empty as opposed to accepting a lower offer with a sooner transfer of ownership date. Monthly outgoings such as the common area fee and utilities can stack up not to mention the time taken to manage these.
Finally, a property that has been on the market for some time will appear stale. Many buyers spend time looking through listings online on www.ddproperty.com before going out to view and will question why a property has not sold should they see it repeatedly.
A property that does not sell is priced too high or does not present well, or both. In such cases, it is advisable to take the property off the market and then relaunch at a later date with newer photography and description to refresh it.
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Disclaimer: The information is provided for general information only. DDproperty by PropertyGuru c/o AllProperty Media Co., Ltd. makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.