Sometimes, home sales don’t happen instantly. There are times when you have to wait for some time before you get an offer from possible buyers. Because of unsold homes, property owners may decide to lower their asking price. But, before you make your final decision, take time to know the facts.
How to Tell If It’s Time to Drop the Price
There are some signs that you have to reduce the asking price for your house. These include:
- Comparable homes have sold except yours. If properties similar to yours tend to sell quicker, this could indicate you need to reduce your price. Thus, if houses that have the same floor plans, rooms, bathrooms, and square footage are selling near or in your area, think about lowering your asking price.
- Only a few lookers check your house out. If people are not showing up to look at your house, this could mean it’s too pricey for their budget. In the hottest market, hundreds of people will look at your property. But, if you are not getting lookers, a lower price point might reignite their interest in your house.
- You get a few offers even if many people look at your house. Even if many people attend your open house, these people may not lead to offers. So if this is your case, you might have to consider reducing your price.
How Low should you Go
If you decide to really lower your asking price, you must implement an effective house price reduction strategy to make sure you pick the perfect price point. Below are some techniques to consider:
- Lower the price significantly the first time. In order to open the price up to a new market of buyers, lower it significantly. Think of a 10 percent reduction. Don’t lower the price in smaller steps as buyers will think it’s a trend to exploit.
- Consult with your agent. Your agent has the market knowledge and experience so make sure you listen to them. They will provide you with some advice on lowering your house’s price until you reach the sweet spot.
- Understand the market. Take time researching about the local real estate market. Begin by searching online for homes that sold recently and current listing prices.
- Research the last sale price of your property. This helps in extrapolating an estimate of your property’s current value. Use the online calculator of the Federal Housing Authority for this purpose.
It is imperative to get your home price right the first time. Do not price your property too high so you avoid drawing out your selling experience. Make sure you pick a reputable agent who can give you professional advice about proper home pricing.
Properties that first come on the market tend to get the most interest. In case you price your home too high unintentionally, it is still possible to get the most profit. Begin your price reduction strategy with the assistance of your real estate agent and you will surely get new purchase offers. Read more here.