For many home sellers, lowering the asking price is a last resort, an undesirable move that reduces the amount they’ll make on the sale. But sometimes, it’s the best decision. How do you know when it’s the right time to reduce the price?
1. The house has few viewers. If your open houses are poorly attended and few buyers are calling to make viewing appointments, they might think the home is overpriced and are waiting for it to be reduced.
2. No one has made an offer. Some real estate experts say that 8 -10 showings should yield at least one offer. That will depend on many factors, not least of which is the market. Bottom line: If you’re showing the house but not getting any bids, it might be time to reconsider the price.
3. It’s been on the market for a long time. What’s “long”? It depends on similar homes for sale. Check out the MLS to see the average number days on the market. If you’ve quickly approaching the average, that is an indicator.
4. Other similar houses are priced lower. Market values might have gone down since you listed the house initially. When comparing prices, look at the homes actively listed instead of what has closed recently. Pay close attention to how long those listings have lingered.
5. The house needs work. Is the heating system on its way out? How do the carpets look? If you can’t afford or are unwilling to make much-needed upgrades, the price should reflect this.
6. You’ve done all the right things. You’ve maximized curb appeal, staged the home, taken care of major repairs and marketed the house appropriately with signage, photos, and an online listing. If it still not moving, the price may be the problem.
7. Time is of the essence. If you simply can’t afford to wait — you’re moving or have already purchased another home, for example — then price the house to move.
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