6 Signs That Its Time to Reduce Your Price

6 Signs That Its Time to Reduce Your Price

In general, fewer showings than your competition can indicate a list price that may need to be adjusted 6% or more.  If you have good showings and no offers, sometimes shaving 1-3% off your "negotiating room" will generate that offer!

 

1.  You are drawing few lookers

If your agent reports that there have been fewer buyers calling about and asking to tour your home than there have been for other homes in the area and price range, that may be sign that buyers think it's overpriced and are waiting for the price to adjust before they even look at it. 

If fewer agents are calling to set appointments to tour with their buyers, that may be a sign that the agents think it does not have the as many amenities or as much square footage as other homes they can show at that price.

2.  You are drawing lookers but have no offers

If you have 20 sets of possible buyers come through your home and not a single one has made an offer, something is off.  Once the buyer comes through the door, the house has a job to do.  What is your feedback from other agents?  An overly ambitious price may discourage buyers from maing an offer, or thaey may be seeing bigger and better at the same price.

3.  You home has been on the market longer than similar homes

Your agent can tell you what the average number of days to sell a home is in your market.  If the answer is 50 and you are pushing 75, your price may be affecting buyer interest.  When a home sits on the market, a couple of things happen.  First, buyers may wonder if there is something wrong with it, and that can delay the sale even further.  Statistically, the longer a home sits on the market, the less it sells for.  Consider lowering your price to generate a better offer faster.

4.  You have a deadline

If you have to sell soon because of a job transfer or because you've already purchased another home, it may be necessary to generate buyer urgency by dropping your price so that your home is a little lower priced than similar homes on the market.  Remember, it's not how much money you need or want that determiens the sale price of your home, it's how much money a buyer is willing to spend.

5.  You can't make upgrades

Perhaps you are out of cash and don't have the funds to paint, clean or replace carpet, and add curb appeal.  If that is the case and the feedback your agent reports is that your home isn't as well appointed as similarly priced homes, it's time to accept that buyers expect to pay less for a home that doesn't show as well as others.  If they see a house priced similar to yours that has new carpet, fresh paint, granite counters and new appliances, chances are they will make an offer on that one first.

6. The competition has changed

If weeks go by without an offer, keep an eye on the competition.  What homes have sold?  What's new on the market?  Have other homes reduced their price? If the answers to these questions show your price is high, consider a price adjustment. 

Remember that most buyers buy what they see.  They take the path of least resistance...if they can spend about what they had planned and get bright and shiny, that's usually what they will do!

For more information on how to avoid mistakes when selling, download our free report called "Avoiding the Top Ten Biggest Selling Mistakes". This report is offered to all guests.

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Contact Information

Photo of Colleen Lawler & The IrvineTeam Real Estate
Colleen Lawler & The IrvineTeam
Coldwell Banker Gundaker
111 Chesterfield Towne Centre
Chesterfield MO 63005
Office: 636-391-2100
Toll Free: 800-791-3276
Fax: 636-536-3018