How Will I Know When My Home Needs A Price Reduction?
Butterflies are common as the for sale sign makes its way into the ground. How long before our first showing? Will those people who drove by the home call for an appointment? Where is our offer?
Sometimes a home will hit the market and immediately find a buyer. With a current market average around 60 days, most homes do experience a gap from the sign hitting the ground and an accepted offer.
So how does a seller know when to do a price adjustment? Experience has taught us that an overpriced home will leave clues. Some of these include...
- Lots of showings, but no offers-- Generally this suggests you are close. A modest adjustment (how much will depend on the price bracket) will usually spur one of the lookers to take the bait.
- A Few showings initially, then crickets-- When the home hit the market, 2-3 agents scheduled tours then dead air. This is generally an indicator that a more substantial adjustment is in order. Again, what "substantial" will mean is dependent on price point.
- Enough crickets to feed a 10lb bass-- Thankfully this is rare, but occasionally the market will completely reject the price. Buyers today are more educated than ever thanks to smart phone technology. When your homes hits the market, buyers will compare your property to others in the area. If they do not see value, generally such buyers will not even request more information from their agent.
So how does the Alexandria La home seller avoid the pricing blues???
- Price right from the start-- Base your starting price as close to the predicted sales price as possible. "Wiggle Room" is sooooooo 1990's.
- Keep in communication with your agent-- Market knowledge is key. The WORST thing that can happen is for the seller and listing agent to lose touch.
- Make pricing adjustments sooner rather than later-- Thanks to technology, potential buyers see the sellers price almost immediately. The days of waiting for the next issue of the Real Estate Magazine to come out are long gone.
- Understand, holding out normally will not net the seller a higher price-- Ever wondered why car dealers offer incentives at the end of a model year? If holding out worked wouldn't the dealer simply purchase a larger lot and wait?
Pricing is one of the more difficult aspects of the real estate sales process. Here at Realty Executives Bayou Properties we keep the line of communication open with our sellers. If an adjustment is needed, we are not afraid to recommend it. Want an aggressive real estate broker who will tell you the truth? Contact Doug Rogers (318) 613-1994 today for your confidential CMA.
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