Determining the asking price for your home can be difficult, especially in parts of the country where comparable homes that have recently sold (aka comps) are scarce. Sure, you can take the help of a real estate agent. But they’re just people, and they make mistakes in judgment just like you and me.
So, let’s say you list your house asking what you want. Definitely be reasonably priced. Still you are not getting any offer…
What did you give? what would you be doing wrong? Is it the price of demand or something else?
In this article, you’ll learn about some of the top ways to know when it is, in fact, time to lower the asking price. here is my.
When It’s Time to Lower the Asking Price of Your Home
1. Your home has been listed for a long time.
So, this may seem obvious enough, but you should take it with a grain of salt. Depending on your market, homes can remain on the MLS for long periods of time without selling.
In general, though, if your home has been on the market for more than a few months and you’re not getting any bites on that bait, it might be time to start raising some nibbles on your hook to increase your demand. Seriously consider lowering the price. ,
If your property has been listed for a while and you’ve encountered one or more of the following problems, lower it now!
2. You have a bunch of demos and no offers.
Are people coming to your home but no one is making offers?
Although your asking price is just that—what you’re asking—the number will affect how people make offers. The general public is not interested in making “lowball” offers to people who want to sell their homes.
So, if you’re getting lots of showings but no offers, consider lowering the asking price.
Connected: 4 Tips for Setting a Profitable Yet Competitive Home Asking Price
3. Your agent suggested it to you—multiple times.
Was your agent recommending that you list it for a lower number to start with? Did a month or two go by without any offers while they were recommending you to lower your price?
If you rely on your agent to sell your home, but haven’t been heeding their advice regarding the sale price, you may want to reconsider your decision to hire them. Otherwise, change the way you are thinking and take their recommendation.
4. Buyers have told you the price is too high.
Many agents these days solicit feedback from each and every person who attends a showing of your home. This response can be about something as small as whether or not they are interested in your home, as much as what they think about the condition and the neighborhood.
A valuable piece of information—again, one to be taken with a grain of salt—is what the potential buyer thought about the asking price after viewing your home.
If you’ve been parading buyers through your home and several of them are coming back and telling you your price is too high, it might be time to listen.
5. The competition is selling for less.
This should be pretty straightforward for any realtor to look at, but you as the seller should also take note. If there are comparable homes in your area selling for less than what you’re asking, why would anyone want to buy from you for a higher price?
Answer… They won’t!
Connected: 10 Tips for Negotiating Like a Pro
6. Only good homes are selling in your price range.
This is another telltale sign that you should lower your ask price. If there are homes in the area that are selling for around your asking price, that can be a good thing. Problems arise when these houses are either too nice (granite counters, nice floors, etc.) or too large.
If any of these cases are prevalent in your area, you need to strongly consider lowering your home’s asking price in order to attract buyers who would otherwise pass it up.
Sell Your Home!
Unfortunately, just because you’re asking someone to pay a certain amount for your home doesn’t mean a buyer will be willing to pay it. If you find yourself in either of these situations, you should take a long, hard look at adjusting your asking price.
Of course, if you’re not in too much of a rush to sell your home, and you think your asking price is reasonable, just play the waiting game. The right buyers will hopefully come. But the sheer number of homes listed for sale for more than 180 days at any given time tells us that it’s wise to swallow your pride and haggle that price.
Good Luck Selling!
Is your home sitting on the market? for how long? Why do you feel this way?
Let’s talk in the comments section below.
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
