When Should You Drop Your Selling Price?

You want to get the best price for your home, naturally. You’ve put it up for sale, focused on things like curb appeal to make a good first impression, and done research for other prices in your location. But despite all of your efforts, what if your home has been sitting on the market and/or you have no showings scheduled? It may be time to evaluate your selling price.

When you initially list your house, it will be a new listing that may get lots of attention at first. But that can change quickly, and as the weeks go on, you might consider the price.

There are many reasons to lower your selling price:

There are fewer buyers looking at your home. If the house has been on the market and there have not been any interested buyers inquiring about your property, it may be time to reduce the price a bit. Many potential buyers may think that your home is overpriced a bit, and taking it down can bring in new buyers.

You have to sell because of a looming deadline. Maybe you’re moving to another state and need to sell before you leave. Consider lowering your asking price to get potential buyers interested.

You don’t have any offers coming in. Maybe you’ve given many tours of your home to potential buyers but no one had made you an offer. It’s possible that the only thing stopping them is the too-high price, so you may want to take it down.

You can’t afford any upgrades. If you were planning to do some improvements like painting, new carpet, etc. but now you simply can’t put out the money for these things, you may want to consider lowering the price. You want the price to be fair considering what the home may be lacking.

Your price is too high for the competition. If your home has been on the market for a month or so and you don’t have any potential buyers, it’s time to give the price a second thought. Staying in touch with the competition will ensure you get the best price for your property.

It’s understandable that you want to get a certain price for your home, but you must be realistic about the market and the condition of the house. It’s a good idea to keep in close contact with your agent throughout the entire process so that you know where the sale of your home stands.

How to Price Your Home to Sell

Homeowners want to get the best value for their home, and this involves strategic planning. Getting your home sold involves three things: location, condition and price. You can’t control the location, but you do have the ability to control the price by improving the condition. While it may seem easier to take the price you paid and simply add a markup, the resulting price probably won’t reflect the true market value of your home.

The first two weeks that your house is on the market are the most critical because it will be exposed to an audience of ready and active buyers. If your initial price is too high, you will lose these potential buyers. The listing price of your property will make or break you. Simply put, if you price your home right, the buyers will come. But you need to know what your home is worth—not what you think it is worth. Here are some tips to help you in pricing your home to sell:

Work with the market. Instead of focusing on where the market has been, focus on where it is going. Look at comparable house prices in your area to get an idea of where the market is and go from there.

Figure out the fair market value of your home. More than just the value of your home, the fair market value is the price a buyer will pay and the seller will accept. It is much more powerful than what your home is simply worth; it is the right price. The best way to determine the fair market value of your property is to use a comparable market analysis to compare your house to others who have just sold or are still on the market.

Think like the buyer. This is a great selling technique because it allows you to put yourself in the buyer’s position and ask “Would I buy this house?” Be rational and look at your home from an outside point of view.

Realism goes a long way. If you don’t own a mansion but price it and market it as one, you will have a problem getting serious offers. Be honest with yourself about your home’s condition and value.

Leave room for negotiation. As a seller, you want to get your money’s worth. Buyers don’t want to pay more than they should. The price you quote should have some leeway for negotiating. But be careful because if you quote unrealistically high, potential buyers will pass you by.

Act quickly. Adjust your price if you have received feedback that your price is too steep, and do it without hesitating.

If your home is in great condition and part of a marketing strategy but it still lacks offers, it is probably overpriced. Signs that prices are too high may include a lack of second showings, or many showings but no offers.

A little research can mean an easy selling experience while maximizing your money. Even though buyers have a separate and not equal opinion of our house’s worth, you need to know that value of your home outside of the fair market value. To assist you in pricing your home to sell, you can geta free home valuation report from Neighborhood IQ and find out what your home is really worth.