Selling a rental property can be a strategic decision, especially if you’re looking to reinvest or step away from being a landlord. With your tenants having moved out and your property now vacant, you’re in a better position to attract buyers who may want to move in quickly. However, if the property has been on the market for 8 weeks without much traction, it might be time to consider a price reduction. But when and how should you do it? Let’s break it down.
How Long Should You Wait Before Reducing the Price?
The first 4-6 weeks after listing are typically when a property attracts the most interest. If your property has been on the market for longer than 6-8 weeks without receiving offers or with limited viewings, it could indicate that:
- The asking price is too high.
- The property is not being marketed effectively.
- There are seasonal factors affecting buyer interest.
In the current UK market, pricing your property competitively is crucial, especially as interest rates and buyer confidence fluctuate. If you haven’t already, discuss market trends with your estate agent to see how your price compares to similar properties in the area.
Best Times of the Year to Reduce Your Asking Price
Timing plays a big role in property sales, and adjusting your price during a peak period of buyer activity can boost your chances of attracting new interest. Here are the most promising times to reduce your asking price:
1. Boxing Day Surge
Boxing Day is famously one of the busiest days of the year for property searches. Many people use the downtime during the Christmas holidays to begin their house-hunting journey, and Rightmove typically reports a significant spike in online property views on December 26th.
- Why Boxing Day? Buyers often start preparing for New Year’s resolutions, like moving to a new home, and want to explore options early.
- Recommendation: If you plan to reduce your asking price, doing so on or just before Boxing Day can help you capitalize on this surge in activity.
2. First Week of January
If you miss the Boxing Day rush, the first week of January is another prime time. Many people wait until the New Year to take decisive action, such as booking property viewings or securing mortgages. A fresh price adjustment in early January could draw attention to your listing.
3. Spring Surge (March to May)
While the holiday season and New Year offer great opportunities, spring remains the peak time for property sales in the UK. If you’re not in a rush, consider holding off until March for a price reduction, as the market tends to pick up in warmer weather and longer daylight hours.
How Much Should You Reduce the Price?
When reducing the asking price, it’s essential to make the adjustment meaningful. A token reduction of £1,000–£2,000 is unlikely to generate fresh interest. Instead:
- Aim for 5-10% Reduction: This range is noticeable enough to appeal to new buyers and may trigger interest from those who previously found your property slightly out of budget.
- Research Similar Listings: Check local listings in your area to ensure your revised price places you competitively within the market.
Work with your estate agent to determine the optimal reduced price. They can provide data on buyer demand and insights into what price adjustments have worked for similar properties nearby.
Other Ways to Refresh Your Listing
If you’re hesitant about reducing the price too soon, there are alternative strategies to reignite interest:
- Improve Your Marketing
- Update Photos: Ensure your listing has high-quality, well-lit photos that showcase the property’s best features. If your photos are outdated or unflattering, hiring a professional photographer could make a big difference.
- Rewrite the Property Description: Highlight key selling points, such as proximity to amenities, schools, or recent upgrades.
- Stage the Property
An empty property can sometimes feel uninviting. Consider staging the home with furniture and decor to help potential buyers visualize living there. - Change the Listing Agent
If you feel your current estate agent isn’t doing enough to market your property, switching agents could provide a fresh perspective and potentially access to a new pool of buyers. - Offer Incentives
To attract buyers, consider offering incentives such as covering part of the buyer’s legal fees, stamp duty (if applicable), or including appliances or furniture with the sale.
Final Thoughts: Boxing Day vs. January
If you’re eager to sell quickly and want to maximize exposure, Boxing Day is an excellent time to reduce your asking price and refresh your listing. The surge in online property searches during this period offers a chance to attract motivated buyers who are starting their house-hunting journey.
However, if you’re prepared to wait, a January price adjustment can be equally effective, particularly as buyers begin making serious plans for the year ahead. The key is to align your strategy with buyer behavior and market conditions, ensuring your property stands out at the right time.
Remember, price is only one factor in selling a property. Ensure your listing is marketed effectively, highlights the property’s best features, and appeals to your target audience. With the right strategy, you’ll find the right buyer.
