While you’d like to get the best price for your home, there are some times when you should consider lowering the price on your listing. There are many situations that might be happening that you cannot control. Perhaps you’re the only one in the neighborhood without a big backyard. There are too many examples. But what IS in your control is the price of the house. The following are some reasons that you may need to reevaluate the listing price on your home.
There’s not much interest in your home
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.
A lot of inquiries, but no serious buyers
You should reconsider the price if you’ve had 35 phone calls to your agent about the house, and 5 showings, and not one person has made an offer. Usually, this has a whole lot to do with your price. It could be that your agent has already told you this is the reason but you aren’t willing to accept it. It may be time to accept it.
Your home’s been on the market longer than homes similar to yours
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 20, and yours is going on 50, it’s probably your price. See: Home Pricing Mistakes & How to Avoid Them. Also, 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. This is called a “stale” house, or a “stale” listing. At least consider lowering your asking price.
The click is ticking
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.
You need massive or even minor repairs that you can’t afford to complete
Maybe you’re completely dry of cash, and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as nice as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.
The competition has increased
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.