Not getting enough people through the property for sale

My new townhouse is up for sale:

3x3x2
Close to station
Basically brand-new
15mins from Perth CBD
Home has been staged

Been up for 70 days, only 5 people through the place. Have reduced the price once (20k) on advice from agent. Agent wants to reduce again (another 20k), however, I am reluctant to reduce again (but not sure what else to do)

Not sure what other strategies we can employ in Perth? The current price range we are seeking is close to the bank valuation (2% lower)

The market has also come down since I bought, which is making it harder.

 

At the end of the day, if the presentation is perfect and the agent active, it all boils down to price.

5 inspections in 70 days is one a fortnight. Clearly buyers are not interested.
Marg

 

It can be a few things but even the worst photos and the worst advert will still get people through the door if the price is right.

When was the bank val done?

You have 3 choices
1. keep on market, as is, paying mortgage payments on it and staging furniture payments and pray for a miracle. It's probably costing you about $3-5k a month to do this?
2. reduce the price - this is a hard call and consider option 3 if it means you'll make a loss
3. rent it out and wait for market to be more conducive to selling

 

Thanks Marg. The agent seems to be okay (not sure what else they can be doing). The house is presented well and everything new.

Thanks WM. The bank val is a little old (probably 2 yrs old). Im getting a new one shortly which should give great clarity.

1. Not much loan on it, and the staging furniture was purchased (thankfully). It's not costing me much to keep it on the market (mainly opportunity cost and some background level of my brains bandwidth). Maybe 10% of what you have suggested.

2. Hard to say, as it depends on what offers we get.

3. Yes, that is an option, although I would like the cash to get something else. I do acknowledge that you can't win every time...

 

If the bank val is 2yrs old then it's probably not at all relevant to today's prices.

How did you determine the price to put on market?

 

I would say a 2 year old bank val would mean nearly nothing in the Perth market today.

Why are you relying on bank vals at all? Personally I think if you're going to the effort of selling a property properly, part of the process is doing extensive DD on the estimated sale price.

I know its a lot of extra work, but probably even more important than things like cleaning up the property or staging it up.

 

In 2 years Perth market went down a lot. More than prices at Coles did. I would imagine the valuation is very outdated.

 

Yep, fair point, the agent's new suggested price is probably closer to the money.

I spoke with a number of local agents in conjunction with the RP data report.

Thatbum - Yes, totally correct. Perhaps I relied on the agents more than I should have. The agents and I, have looked at comparables in the area (there aren't that many), and that was how the original price was formulated (it's since been reduced once).

Sorry, I should have said in my original post that the original price was based off the agent's suggestions (3 agents) along with comparables in the market (but like I said, there aren't too many).

I think ill take the agents advice and lower once more.