Pricing a house to sell from the get-go is the best strategy to get it sold fast. If you’ve done everything necessary to get your house sold but aren’t getting encouraging results, it is likely that the price is the problem. If the asking price is too high or the market is declining, adjusting the price can generate new interest and help get the house sold.
So when is the right time to reduce house price for the best results? The best approach is to ensure that the home is in good condition and that you’ve marketed it well for maximum exposure and then rely on market data and the feedback you’re getting to determine when to reduce the price on house. Here are indicators that your home needs a price reduction:
You have a prominent for sale sign and have listed the house on multiple real estate websites and even social media sites. You have uploaded attractive pictures of the house and a compelling description and yet you haven’t had a single interested buyer come to see the house in person. If the local housing market is good, this is a strong sign that the price isn’t right and needs reviewing as soon as possible.
If you’ve had twenty or more showings and always make sure that the exterior and interior of the house are in immaculate condition but are yet to get a decent offer, this means that you’ve done an excellent job of making your home appealing and marketing it.
Potential buyers know your house is for sale and they like it but they don’t agree with the price. Since they have multiple options to choose from, they will submit offers to the competitively priced option. Review and adjust the price to make the house compelling in terms of price and value and you should start getting offers.
It is always a good idea to ask your real estate agent to ask for feedback after showings and open houses. You can then use the constructive criticism to improve the house. If the you’re getting consistent complaints that the house is overpriced, it is only wise to listen, reassess the asking price and revise it downwards.
It is the local housing market that dictates what price is fair and so it is important to move with the market. You may list in a hot market only for the market to start slowing down with your listing still on the market. This means declining values and the need to revise the price downwards.
To find out if your local real estate market is slowing down, research your local housing market to see how other for sale properties are faring and ask your agent to give you a comparative market analysis (CMA). Analyze the pricing and average days on the market for comparable properties that are currently on the market and those that sold recently.
If your house is priced higher than comparable properties or has exceeded the average days on the market, consider reducing the price of your home.
If you sell your house to a buyer relying on a mortgage loan to pay for the house, the lender will require an appraisal done to ascertain the value of the house. If you already had a buyer only for the deal to fall through because the appraised value came in lower than the purchase price, this is a solid indicator that a price reduction is necessary. Reducing the price to reflect the fair value of the house will attract more offers and ensure the deal doesn’t fall through again due to a failed appraisal.
If you’re motivated to sell your house as quickly as possible and therefore don’t have the luxury of waiting, reducing the price can help get it sold fast. If you’ve to move fast due to a job change or if you have found another house to purchase and need to sell the current one before you can pay for the new one, making a price cut can help you achieve your goal of selling it quickly.
There is no one right timing for a real estate price reduction. The best time to reduce house price is as soon as you realize a price reduction is necessary. A new listing should receive a lot of interest (viewings and offers) in the first two to three weeks. If the house is in good condition, you’ve marketed it well and the market is good and yet you fail to experience this initial flurry of activity, it is a clear indication that the price isn’t right.
The longer a home lingers on the market the more it loses value and the harder it is to sell. If your house has already languished on the market for a long time and is now a stale listing, consider taking the house off the market, revamping it and then relisting at the new price.
Make the new price attractive so potential buyers consider it an amazing deal. Look at the prices of similar properties in your area and price your home so it is among the bottom two to five listings. If you want it sold as soon as possible, you can even dare and price it less than any other listing on the local market so it will receive multiple offers. It is very hard to underprice a house as the market will push the price back up.
Ideally, you only want to reduce house price once. Multiple price cuts will make potential buyers assume there is something wrong with the house while those interested will anticipate further price cuts.
If you’re presenting your house in its best light both online and for physical showings but are not getting showings or offers, this is an indication that price is the reason why your house isn’t selling and a telltale sign that you should reduce the price.
There is no universal timing for when to reduce house price. There only way to do it right is to ensure you’ve done everything else – presentation and marketing – right and then rely on market data and the feedback you’re getting. You real estate agent will also help you decide when a price reduction is necessary and how to go about it.
The Effect of Pricing Strategy on Home Selection – Jstor.org
Need to sell a house in the NYC area fast or as is? Master Realty Solutions Buys Houses in All Conditions in Long Island, Brooklyn, Bronx, and Queens. Want to learn more about the cash home buying process? Please give me a call at 718-993-3303 or email info@MasterRealtySolutions.com