In a fast-moving real estate market, every seller expects to sell their home sooner rather than later. But what to do if you find your property is sitting on the market for a long time, and you need to sell ASAP? You consider cutting a bit of your asking price but afraid that you might be robbing yourself of a few bucks. On the other hand, it’s not selling at the current price. When is it time to consider a price reduction?
QUESTIONS TO ASK YOURSELF
Did I overlook something?
If you think you should’ve closed the sale months ago, consider asking a real estate professional for an honest and educated opinion. Sometimes, a fresh set of eyes can pick up something that you might have missed. A real estate professional will have access to more market data to help you determine the appropriate price, based on comparable sold houses in your neighborhood. A professional can let you know what similar features your house has to the comparables, and what features and updates it may be lacking.
Is it currently a buyer’s market?
It is not a good decision to put a high price tag on your home when the inventory is high. When buyers have several options, they can be more picky in finding a good home, at a good price. If you need to net a certain profit, it might be best to hold off selling your home, if you are able.
Is my asking price too high?
Sellers often let emotions control their pricing, leading to an initially too high asking price. Sometimes a price is set too high because a seller is trying to net a certain amount. Ask yourself: is my price set with market facts, or is some personal need, or want driving my price?
Pricing your home too high, could also lead you to “chasing” the market. This is when your initial price is too high, and you end up having to continuously lower your price…”chasing” the market down. This could make you look desperate, and lead to even lower offers. It is important to start with a realistic selling price.
A home, whatever state it’s in, will eventually sell, as long as it’s priced right. Often sellers think, that by asking for a higher price, they’ll be able to settle into their desired price. This strategy could actually have the opposite effect. Buyers may pass over your listing, because the price is too high, and there are other correctly priced homes to see. Another negative effect of pricing too high is going stale on the market. If your house is sitting on the market for a while, buyers begin to think there must be something wrong with the house. Seeing a house listed for sale for a long period of time, may very well bring in low offers, thinking you are getting more anxious to sell. The longer it stays on the market, the less attractive it is for any prospective buyers.
SIGNS THAT YOUR HOME NEEDS A PRICE ADJUSTMENT
Not receiving enough offers
Too high of a price is the most common reason why a home hasn’t been receiving offers. If you think about it, why would you put an offer on a home that’s overpriced when you can find something similar, or better, at a much cheaper price? Buyers are unlikely to place an offer (or even attend showings) with an overly ambitious price tag. If you’ve scheduled an open house, and few buyers, or none show up, your price could be the problem.
Using an appraisal, or market analysis to determine value
If you’ve had an appraisal, or market analysis completed, before listing your house for sale, it’s a good idea to stay close to the professional opinion on your property’s value, and list it accordingly. You may receive an offer at your higher price, but the buyer’s appraisal could come back lower. This will either lead to canceling the deal, or you having to accept a lower price than expected. If the deal is canceled, you’ve wasted time. You’ll have to put your house back on the market, and begin marketing it all over again. Consider having an appraisal, or market analysis completed before listing your home. If you haven’t had your home appraised yet, now would be the right time to do so.
Similar homes are priced lower
You may think that your home is comparable to other homes selling in your neighborhood, but is it? Your home could be very nice, but does it have the same level of features and updates of the comparable homes? Take a good look at similar homes within your area and you may find that your house maybe should not be listed at the top of the market. Being too aggressive with the price, will only lead to your house sitting on the market longer.
HOW LOW TO GO?
If you took a chance, and started your price higher than the market value, it is important to recognise it quickly, and make a solid price adjustment. You do not want to make multiple small price drops. This will only make your listing look stale. Make a price adjustment that shows you’re serious about selling your home, but you still have room to net an amount you are comfortable with. Ideally, you’ll want to price correctly from the start, but if need to drop the price, making only one price drop is best. Nobody is fond of having to make a price cut. Decide on a reduction that’s significant enough to jump-start interest on your home.
Base your price adjustment on the recently sold comps in your neighborhood. Stay within that price range. It’s always best to act fast and be realistic. The number of open house attendees drops quickly after the first few weeks that your listing is active, which is why it is not a good idea to wait on it. When contemplating what your lower price would be, always make sure that you’re comfortable with the amount. What’s the lowest price you can accept and successfully move on from the sale?
If you still find that your new price still isn’t resonating well enough with your buyers, worry not. A lot of sellers share the same dilemma when it comes to a relatively slow sale. Our team of professionals from SellUsHomes is looking for Detroit & Southeast Michigan homes to buy fast for CASH in AS-IS condition! To learn more about our services, contact us at (734) 224-5947 or reach out to us via email at email@example.com.