If a home is not selling - it's generally because of price. But many Sellers price their home well - and it still doesn't sell. So, what's the magic answer for when is the right time to drop the price of your home and by how much?
Once, a Seller's said, "I am tired of owning this place, drop the price!" Easy enough - but others resist, they won't - can't - aren't ready, or just feel if they hang on a little longer - they will get their price.
Here are some situations where price adjustment discussions are important:
If you are the highest priced home in your neighborhood or there is a wide spread between your price and another comparable home- it's time to re-evaluate your price.
If your home has been on the market a short time with no showings - review comps again. What are the most current list-to-sell days and sold prices? Have there been changes in your area? It could be the market has shifted and it might be time to think about a more aggressive price.
If the home is priced low, getting showings, been on the market a little while and it's still not selling - look at your home from a Buyer point of view. Is it clean, presentable, easy to show, etc.? If not, make any changes needed and sit tight - perhaps your home might just need a little more time to sell.
If you smoke in your house, stop. What does that have to do with price? A Buyer said to me a couple weeks ago, "He'd have to sell that house for a whole lot less before anyone would buy it." Smoking is offensive, it costs money to eliminate the smell from a house and Buyers will avoid it.
If you listed at the high end of the comps, have no showings, or agents who "preview" and subsequently list the house next door at a much lower price - it's definitely time to adjust your price.
Finally, when you do a price drop - don't play games - make it drastic. Often Sellers want to reduce their price by a couple thousand dollars thinking that will do it. Price drops must be noticeable and get the attention of Buyers. It doesn't matter if they think you are desperate to sell - the objective is to get offers!
So when my tired Seller asked, "How much should I drop the price then if you don't agree with my figure?" I asked, "How how much will it cost you to continuing owning the home for six more months?" That seem to help him figure out his "tired of owning it" price, and he received an offer a week later.
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