July 5, 2016
Home Sellers: Is It Time To Lower the Price of Your Home?
Thirty days have passed by. You have received no offers and the agent showings are dwindling or are non-existent. It is time to re-evaluate.
Your agent should reach out to you and ask for a meeting to discuss the activity of the first 30 days on the market. Your agent will give you important information as to results of their marketing, showings, agent conversations, potential buyers, and open house results. They should also provide you with a report of recent sold properties, pending properties, active properties, and new construction that match the size of your home, its features and benefits, and neighborhood. It’s important for you to know what your competition is.
Buyers are much more savvy today and have full access to properties for sale on the internet. They comparison shop and do their homework. If your home is priced $10,000 more than 5 other properties for sale in the general area with similar size, features, and benefits, which homes do you think they will look at first? It’s important to have the optimum position of being in the top 5 properties for sale in your price range. Agents representing buyers are looking out for their best interest, and will generally show the best priced properties in the neighborhood. You want your home to be one of the homes they will show their buyers. Don’t let your property become stale. Be open-minded to the research your agent presents to make an informed decision.
The price you set is the key factor in the sale of your home. Research indicates that 92% of buyers search for their home online. Agents search the MLS. Each will search by price range. For example, if your home is priced at $401,000, it may be missed when buyers and agents search in the ($300,000 – $400,000) range. Don’t miss out on those searches. Setting your price at $399,900 can make the difference in creating more opportunities to sell.
Good rules to follow:
- Listen to the Research (comparables) the agent provides
- Keep your Emotions in check and remain objective
- Don’t price too high from the beginning or because you have “time”
- Don’t chase the market by reducing and reducing
These are just a few points to consider. It’s important to have good, open communication with your realtor.