In a hot sellers’ market, you’re probably pumped to get your home on the market. You know that buyers will just be racing to put a contract in on your home. You’re thinking, “What if we get multiple offers? How far will they run the price up?” You’re excited so you price your home above market value to get the most out of the sale. Can’t hurt, right? And then – nothing happens. Sparse showings. Zero online engagement. You give it a couple weeks, certainly time will help. And then you wait. Still no offers. When do you consider a price reduction?
Consider reviewing the average days on market for homes in your neighborhood. For example, if the average days on market for your neighborhood is 75 days, and the average closing time frame is 45 days, you’ll have about 30 days to get an offer before you consider a price reduction. A hot neighborhood is only hot if homes are priced appropriately.
Comparable Sales and Active Homes
Take a look at comparable sales in your neighborhood to understand which homes are selling, at which prices. How does yours compare? This comparison was likely done by your Realtor when it came time to list your home. Did you follow that advice? Also, keep an eye on active homes in your neighborhood. If they are similar in size, condition and finishes, and they came on the market and went under contract before you, consider a price reduction.
Feedback from Showings
Even unsuccessful showings can provide a wealth of information. After every showing, your agent should receive feedback from the showing agent to help you understand how your home stacks up against competition. Sometimes a home might not be the right fit for a specific buyer, but other times the price, in comparison to the remainder of the neighborhood, can make all the difference. If you get feedback that your home is priced higher than it should be, take it seriously and consider a price reduction. Of course, if you price it too high to even get a showing, you won’t get any valuable feedback to begin with.
Ask Your Realtor
Your Realtor can provide all this information to you and help you make the right decision. It is your Realtor’s job to sell your home and price is an adjustment that is easily made to produce better results.
Take your Realtor’s advice from the beginning and price your home at market value, this way you’ll eliminate the need for price reductions in the future. You will get more showings, more interest, and more offer activity with a well priced home. The numbers won’t lie.
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