Our Price Reduction Strategy
Everyone expects that their home will sell quickly, especially in an area with a high-moving realty market. So what do you do if the offers you receive don't come in as fast as you expected?
Nationally, 12.9% of sellers lower the house's price at least once. Consider this when you are considering a price drop: The longer a house is on the market, the less likely it is to be sold at the listed price.
Sellers who accept an offering within the first week after listing have a 57% chance of selling at the listed price. It drops to 39, 32, and so forth during week 2. This is based only on national data. If you live in a strong sellers' market, your chances of selling quickly for a higher price are greater.
Is it the right moment to adjust your price? These are some factors to consider:
Indications That Your Home Requires A Price Adjustment
Prices For Nearby Comps Are Lower
We want to make as much money as possible while keeping your listing competitive. Unfortunately, it can be difficult to determine the right price for your home. Many sellers adjust their list prices within weeks.
We look at similar homes in your area. We analyze if your home was priced too high in relation to the current market? Do similar homes sell faster?
We Are Not Being Offered Anything
There are many reasons that buyers might not be interested in your home. However, the most common reason is price. Buyers who feel they can find a comparable home for a lower price will not make an offer or set up viewing if they don't believe they are. Therefore, your listing could be at risk if people view it online and don't submit an offer. Or if there is no open house attendance.
There Are Very Few Showings
The foot traffic to your door can be a good indicator of how attractive your listing price is. Showing traffic and open house traffic tend to decrease after two weeks. This will let you know quickly if your listing price isn't appealing to buyers.
Low Home Appraisal
Smart sellers often get their appraisals before listing to obtain an objective opinion about the appropriate price. However, it might be a good idea to get an appraisal if you don't have one.
You can find your answer if the home's value is significantly lower than your asking price. A low appraisal by the buyer's appraiser could cause a contract to fall through. This is another indicator that a price adjustment may be an option.
A Bad Agent Could Mean A Price Drop, Review There Marketing
Before you take any action to reduce your price, you must step back and ensure that the price is not an issue with ineffective advertising.
Upload The Photos And Videos:
Even though your home is beautiful in person, low-quality photos or none at all will prevent buyers from viewing your listing. Professional photos of real estate are worth the investment, especially in a highly competitive market. To help buyers feel the layout of the home, consider adding a virtual tour.
Make Sure Your Online Listing Is Complete:
Make sure your listing description portrays your home in the best light possible. Highlight your home's best features, give information about the area, and include the keywords that buyers love. Local real estate agents should be able to give you insight into the most sought-after home features in your neighborhood.
Check That Your Home Appears In Multiple Places:
Whether your property is being listed by an agent or a private seller for sale, you need to ensure that your home appears in multiple places online and offline. Talk to your agent about their online marketing strategy for your home.
Place Signage In Prominent Places:
According to recent research, 55% of buyers stated that open house or for sale signs played an important role in their home search. You should have lots of signs in the area, including wayfinding signage for an open house.
From People who visited your home, but did not make an offer, is a great resource. Ask for feedback if you have held past showings. If you are using an agent, have them follow up on showings and offer constructive criticism. Next, you should take steps to fix any feedback that is not working.
You Must Act Quickly:
As we have already mentioned, open house attendees and showings drop significantly after the first few weeks of your listing being active. Don't delay! Don't delay if you realize you must lower the price.
When discussing the price of your new lower price, ensure that you are comfortable with it. How low can you accept the price and still be able to move on with the sale? If you are not financially able to pay the price, it is not a fair price.
Check Out What Other Sellers Are Doing:
How long have they been waiting to adjust their prices? What price reductions are they making? Look at recent sales for clues about your discount and timing.
Reduce The Price Only Once:
Nobody wants to see a price drop, so sellers often make small price adjustments to alleviate the pain. This strategy is not recommended. It can take several small price reductions before buyers notice. You'll only prolong the selling process. Instead, choose a significant cut to get your home more interest.