Considering Lowering your Listing Price?
Reducing the price on a home will always bring more attention to the property, but there are some things you should do first.
Selling a house often takes longer than homeowners anticipate. Although there are some crazy ways to sell your home before that, you may want to consider lowering your listing price to encourage a quick sale. However, the price isn’t always the problem. Before you lower your asking price, take a few moments to review the following aspects of selling a home to ensure you make the best decision.
Things to Consider Before Lowering Your List Price
The Length of Time Since Listing the Property
The number of days your property has been sitting on the market without any offers is a good indicator of the need to lower your asking price. Most homes for sale do not sell on the initial day of listing. However, homes that sit for weeks or months without buyers becoming interested typically have an existing problem. The issue can be as simple as a price that is too high for this type of property and location. If this is the case, lowering the asking price can bring prospective buyers to your door. Always discuss this option with a trusted real estate agent before making your decision.
The Similarity to the Appraisal Value
Buyers who match their asking price with the home’s appraised value are more likely to sell their property quickly than homeowners who ask for more money. Most first-time buyers need to borrow the money to purchase a home, so every dollar impacts their bottom line. Keep your listing price close to the home’s appraised value if you want to get a fast sale.
The Quality of Your Listing Photos
Have you checked out your listing photos lately? You may need to update them to entice buyers to take a second look at your house. Perhaps your exterior photos are seasonal, or your internal shots show a cluttered home. Take the time to stage your home for new photos and put them up for immediate viewing. Remember to take photos of your home’s best features. Consider using a professional real estate photographer for the best results.
The Effort Put into Selling the Property
Selling a home takes a lot of effort and Realtors do a lot to get homes sold. Have you taken the time to remove the clutter, freshen up the home’s appearance, and market your listing? Review your efforts to date and work on the areas that need some help. If your home is still filled with lots of stuff, clean it out, and get rid of the clutter. Take the time to review your real estate agent’s marketing strategy. Perhaps it is time to list your home on other high traffic real state websites or have an open house. You should also make sure that the “For Sale” sign is visible from the road.
The Number of Bids Offered
If prospective buyers have marched through your home without making an offer, you may need to take a long look at the reason why. The fact that buyers were interested enough to check out your home in person suggests your listing photos are enticing and the location is good. It may just be the asking price is too high for the features you have to offer.
The Selling Prices for Similar Homes
If your home isn’t selling, but other properties for sale in your neighborhood are, your asking price might be too high. Check the asking prices of similar homes and compare them to your listing. Buyers gravitate naturally to homes with lower price tags, particularly when the market is glutted. Keep your listing price in line with homes offering the same type of amenities, architecture, footage, and location.
The Number of Similar Homes Currently on the Market
When the housing market is filled with listings, it is often more difficult to sell your home. This scenario is referred to as a buyer’s market. Lots of choices are available, making it less likely that your home is going to sell quickly. In this situation, the best way to encourage a sale is to lower your asking price. Doing so motivates buyers to take a look at your home before viewing other available options.
The excitement of listing your current home for sale can be short-lived if the property doesn’t sell quickly. When this happens, you need to take a look at some of the most common reasons why properties linger on the market while other houses sell. Before you decide to lower your asking price, take the time to review every aspect of your selling strategy to make sure that this is your only choice.