So, you’re selling your home, when is it time to reduce the price?
Welcome to one of the most stressful times of your life. Trying to keep the house clean so you approve a showing at a moment’s notice, looking for a new property and thinking about all the packing that needs to be done.
Don’t let the pricing of the home you are selling add to the stress. We all want to get the most we can out of our investment. At some point though, even if you and your agent thoroughly researched where to price, there may be a time you will need to make a price reduction. Here are four of the big signs we look for as real estate professionals.
1. Negative feedback regarding price
This one is pretty straight forward. If you have showings and the feedback is that the home is priced too high, let’s go ahead and make that reduction. Some buyers won’t even make an offer because they feel that you won’t negotiate with them if you are grossly overpriced.
2. Lowball Offers
Sometimes if you are overpriced, you will receive low-ball offers. Some buyers feel that this tactic will work because if they start low, you will eventually negotiate down to where you should really be priced. Sometimes though, those low-ball offers are where you need to be priced, to begin with.
3. No or Slow Showings
In a typical market, we tell our sellers to expect at least 7-10 showings in the first two weeks. If you haven’t received that amount of showings, chances are high, and the market is rejecting you. Sometimes you may even have an appraisal to support your price but no showings are the market speaking, and fair market value is what the market is willing to pay, not what the house appraised for.
4. Competition Selling for Less
Your agent will be monitoring the market, and if your competition is selling for less, you are already late to the game and need to reduce immediately. You never want to be behind the market always chasing the pricing game.
Your agent will always have a pulse on the market and can advise you accordingly. Remember, don’t shoot the messenger. We only want what’s best for you, and sometimes that means it’s time to reduce the price of your home. The worst thing we can do is allow you to sit on the market and get stale, that is not helping you reach your next goal.
Happy Pricing and Happy Selling!