Locally, we have been in a crazy market for the past several years.  It’s been a strong sellers market and we know this because we’ve seen the increase in sales prices, the multiple offers, bidding wars, etc.  It is easy for a seller to get wrapped up in all that excitement they’ve seen and think they can get a little more out of their home.  Sometimes, however, it can be a dangerous game.  That game being overpricing your home.

In our market, I’m currently seeing things with multiple offers and others that are getting stale and sitting on the market for a while.  Often, there are reasons to point to for why this is happening.  Other times, it leaves you wondering why.  We can’t always predict exactly how the market will perceive a property.  However, as an agent, we know some signs to look out for and some advice when it comes to reducing your price.  Also, keep in mind that properties don’t sell for one of two reasons…price or condition.

• Number of showings/traffic:  There are two scenarios here that would make you want to think about doing a price reduction.  If within the first 10-14 days you have very few showings OR you have had a ton of showings/traffic through but you have not received a single offer.  Both indicate that something might be off and you may need to reassess the price.
• Days on Market:  The longer your house sits, the lower price you will receive.  It is the truth and statistics back this up time and time again.  If you start too aggressive with your price and don’t adjust fast enough, you risk getting stale on the market and you lose out on interest of those initial buyers that might have been perfect for your property.  Starting out at or even a little below the market is where you want to be rather than overpriced.
• Amount of your Price Reduction:  How much you reduce your price matters just as much as actually reducing it.  How much to reduce it by depends on your market and the price point of the home.  If you have a million dollar listing and reduce the price by $2,000, that isn’t going to motivate people enough to write an offer.  On the flip side, if you have a $250,000 listing and reduce it by $10-$15K, that will definitely make a buyer look at it again as it is more of a monthly savings for that buyer.
• Timing of Price Reduction:  I love to adjust the price of a listing strategically before the weekend and couple it with holding an open house.  Once you update the price in the MLS, it will be automatically sent out to those that have auto searches set up.  Buyers will scan those before the weekend to see which open houses they want to attend.  Getting more traffic through the property is what we want.  

These are just some thoughts when it comes to making that hard decision to reducing the price on your property.  It is always best to price in order to avoid having to do it but sometimes, the market is hard to predict.  What is important is that you find an experienced agent that knows the market and listen to their suggestion on what they believe the price should be.  You also want an agent who is actively trying to sell it by having a complete marketing campaign surrounding your property and is continuously checking the market while it’s listed to make sure you are situated correctly in the market.

If you have questions on what you think your home would be worth or currently stuck right now with a property not selling, please contact me and I’ll help!