Are you struggling to sell your home? If so, maybe it’s time to reduce your property asking price. A common question sellers ask is at what point they should lower their price once their home is listed for sale.
How does a seller know if their home is priced too high for the current market and at what point should the price be lowered? Well, it depends on the property, the situation and the market. However, there is a common rule of thumb that seems to work well in the marketplace and it’s this: If a home has been on the market for three to four weeks, or has had buyer showings and no offers, whichever comes first, and then it’s time to lower the price.
While the main goal of any home sale is for the seller to get maximum value, it can sometimes be challenging to determine the exact maximum value price. However, it doesn’t usually take long before a seller knows if he or she over-priced their home. There are some key tell-tale signs that will let you know.
The best course, obviously, would be to appropriately price your home in the first place. If you hire a good real estate agent, you’re much less likely to run into this problem. But… if this does not happen for some reason or another, it’s important to know when to drop the price.
Below are some tell-tale signs that you may have overpriced your home.
1. You’re drawing few lookers.
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.
2. You’re drawing lots of lookers, but have no offers.
If you’ve had 10 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.
3. Your home’s been on the market longer than similar homes.
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 45 and you’re pushing 60, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.
The bottom line: If your home hasn't sold within the appropriate time frame, then talk to your realtor about a possible price reduction. The longer you wait, the longer it will be for you to sell your home. Get it to the right price ASAP and maximize your profits. How do you know when you've hit the "right price?" That's simple: When a buyer buys it!