In Lancaster’s competitive property market, many homeowners face the tough decision of lowering their asking prices to attract buyers. With the number of homes on the market in the Lancaster area (LA1 and LA2 ) rising from 552 in August 2022 to 905 in August 2024, sellers are finding that strategic price adjustments are more important than ever to stand out from the crowd.
Price Bands and Visibility on Property Portals
One effective way to enhance your property’s visibility is by understanding how price bands work on popular property portals like Rightmove, Zoopla, and OnTheMarket. These bands are predefined price ranges that buyers use to filter their searches, and positioning your home within the right band can lead to more views. For example, pricing a property at £300,000 rather than £299,950 ensures it appears in searches for homes between £280,000-£300,000 and £300,000-£325,000, potentially attracting a larger pool of prospective buyers.
Reappearing in Property Alerts
When considering a price reduction, it’s also crucial to understand how it affects buyer visibility. To trigger property alerts on platforms like Rightmove and OnTheMarket, sellers need to reduce their price by at least 2%, while Zoopla requires a 3% drop. This can help reignite interest from active buyers.
The Current Lancaster Property Market
Many Lancaster homeowners have noticed an increase in price reductions compared to a few years ago. This trend aligns with the growing number of properties on the market, naturally leading to more adjustments as sellers strive to compete. In 2022, there were about 45 price reductions each month in Lancaster, compared to 91 per month in 2024. On average, homes have been reducing prices by 5.4% in the past three months.
Interestingly, the percentage of homes reducing their asking prices has remained relatively stable. Over the last five and a half years, about 1 in 11 homes (or 9.1%) have reduced their prices each month. This highlights the importance of setting a realistic price from the beginning to avoid later reductions.
A look at recent years shows a consistent trend in price reductions:
- 2019: 9.7% of homes reduced their prices monthly.
- 2020: 7.8% of homes saw price reductions.
- 2021: 7.1% of homes reduced prices.
- 2022: 8.8% reduced prices.
- 2023 and 2024 (so far): 10.9% of properties reduced their prices each month.
Effective Pricing Strategies
Setting the right price from the start is crucial for a quick and successful sale. Homes priced too high may linger on the market, eventually requiring significant reductions, whereas realistically priced homes are more likely to attract offers promptly.
For those homeowners who opt for a higher initial price, it’s recommended to be prepared to adjust quickly, ideally within the first two to four weeks. Waiting too long (two to four months) can reduce your chances of a quick sale.
Six Considerations for a Price Reduction
- Lack of Viewings: If your property hasn’t attracted many viewings, compare your listing photos and details with similar properties. If everything seems up to standard, it may be time to reassess the price.
- Viewings But No Offers: In the UK, the average “viewings to offers” ratio is eight to ten viewings per offer. If you’ve had many viewings but no offers within 30 days, the price might be the issue. Research shows buyers often hesitate to make offers far below the asking price, so a small reduction could bridge the gap between their expectations and yours.
- Low Offers: Buyers might make low offers due to market conditions, property condition, or budget constraints. If you’re receiving low offers, remember that a home is worth what someone is willing to pay, not necessarily what you or the estate agent believe it’s worth.
- Market Saturation: Check how many properties similar to yours are on the market. Compare your home to those that have sold, as they will provide a better gauge than unsold listings. Adjusting your price to become more competitive could help.
- Seasonal Trends: Market activity fluctuates with the seasons. If you’re selling during a slower period, like November or December, adjusting your price may be necessary.
- Feedback from Viewings: Consistent feedback about your asking price during viewings is a strong indicator that a reduction may be needed.
Seek Expert Advice
Navigating Lancaster’s property market can be challenging, but expert advice can help you make informed decisions. Consulting a professional can provide tailored insights and ensure you’re on the right track with your pricing strategy.
Is your home struggling to sell? Are you thinking of moving but are not sure on how to price your home to attract buyers? At JDG we are here to help. We give honest advice backed by accurate market data. We will tell you what you need to hear rather than what you want to hear. You can call me on 01524 843322 or email me at michelle@jdg.co.uk.
Thanks for reading
Michelle x
