It’s no secret that sellers occasionally have unreasonable expectations about the value of their home. Dissociating from the emotions involved is necessary for setting a realistic price and it’s easier when viewing the sale as a business transaction.
Setting a realistic price right from the start doesn’t always mean you’ll never face a price reduction. Keep in mind that market prices do change and don’t view it as a defeat should you have to adjust your asking price. The whole idea is to have your home sell as quickly as possible and not languish on the market long after others have sold.
If your property has been on the market for several weeks with little attention, the damaging implication is there’s a hidden flaw or it’s overpriced. Reducing the selling price could send warning signs about your home and may not help a sale.
Unfortunately sometimes a price adjustment is necessary. This doesn’t always mean a drastic reduction; a minor price drop may be all that’s needed. It’s important to consider the competition. What are comparable homes in your neighborhood selling for? One of the main reasons you may need to reduce the asking price is to keep your property price in line with similar homes.
When a new property hits the market, the buzz should generate some interest. If, in the first weeks, there are not many showings, you may need to evaluate the price.
Being on the market longer will adversely affect the appeal of your property so it’s imperative to act quickly with home sales. By lowering the price fast, more interest in the property is generated and this will boost showings. Dropping the price of your home can be difficult but could be just what you need to achieve a sale. Your estate agent will be constantly monitoring sales in your area and can advise you if your price is too high.
Another factor to consider here is the average Days on Market (DOM) for your area. Your agent will be able to give you this number and if your property is approaching the average DOM this may be an indication that a price adjustment is needed
While dropping the price of your home may seem like a fail, if it produces a sale that’s the ultimate goal. A price in line with the local real estate market is the key to getting your home to sell. Work with your agent; be practical about your asking price and you’ll soon be putting up a sold sign.