We all want to get top dollar for our home when we are trying to sell it. It seems that most home sellers list their home at the highest price they hope to get and then eventually lower the price to where it ends up selling. If you are one of those sellers, it may be time to lower the price to where it will sell. How do you know when it is time? These six signs may be telling you it’s time to lower your price.
1. Fewer interested buyers are looking
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.
2. Many buyers look, but no offers
If you have had a lot of potential buyers come through your home and not a single one has made an offer, something is off. It could be the location, an undesirable floor plan, the condition, or something, but most of the time it is price. An overly high price may be discouraging buyers from making an offer. It is true that the right price will overcome all buyer objections. They are not objecting to location, condition or anything as much as they are really objecting to the price.
3. You have a deadline
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend. An attractive price will help a buyer to choose to buy your home so you can meet your deadline and get moved.
4. You can’t make the needed home improvements
Maybe you are out of cash and do not have the funds to put fresh paint on the walls, replace the carpets, and add curb appeal. If your home needs some repairs, but you can not afford them, a price reduction will help attract the buyer. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.
5. The competition has changed
If months go by with no offers, continue to check out the competition. What have comparable homes sold for and what's still on the market? What are you competing with in your price range, and how does your home compare to them? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.
We all want to maximize the return on our investment, but there are many factors to consider when pricing a home. If you need to sell, price is the number one thing that will attract a buyer. If you have questions about the pricing of your home in Pocatello, Idaho, contact Greg Johnston, Realtor.