No homeowner likes to hear a price reduction strategy from his realtor. It may be music to ears for the buyers but hurtful to the ego of the owner. It is common to see sellers and buyers pointing fingers at each other for setting an unrealistic asking price. It usually happens when the market is slow or when it is a buyer’s market. Price reduction often works when the house is not selling or has not received any offers from buyers. However, price reduction is no guarantee your house will sell quickly.
Indicators suggesting price reduction
- You should look at the price range in which homes in your area have recently sold for. If these prices are much lower than your asking price, it means you need to have a price reduction.
- If your house has been on the market for more than a week and you have not received any offer so far, your asking price could be a reason.
- Very few people are coming to attend your house showings
- You have got an appraisal that is lower than your asking price
- Your house has stayed for longer than average DOM in your area.
Choosing the right time to reduce the price is not an easy one. But once you realize it is your asking price that is hampering with the sale of your house, you must take the step of price reduction. The best person to consult in this regard is your real estate agent. He can also recommend a lower price that he thinks will attract many buyers. However, price reduction is a decision that must be taken by you being the owner of the property.
Before taking a decision of price adjustment, it is necessary to be sure that the real issue or problem behind poor response from the buyers is the high price tag. Maybe it is because of inadequate marketing efforts. You can give it a try one more time by uploading better photos with your listing and by listing your house with multiple services. You can also try placing For Sale signs in prominent locations near your house.
If marketing efforts do not yield results, it is time to go for a price reduction. Make sure the new price tag is a realistic one. Reduce price once only and not several times. You should be able to attract many buyers.