Trulia reported today that as of August 1, 26% of Phoenix home sellers had made at least a 1% reduction in their original asking price. The average reduction is 13% for a total of $84,109,665.
“The reality is, today’s sellers need to price aggressively to avoid reductions. Consumers are looking for value and when they find a good deal, they are taking advantage of market conditions,” said Trulia’s co-founder & CEO Pete Flint.
Erring on the side of pricing your home too high might seem like a good idea -- after all, if you don’t see any interest in your home at the original price, just cut it, right? Well, not really.
The fact is that buyers’ real estate agents know the market values in your area. They know the ballpark of your home’s value. If you price your home above that, they’ll discount your listing and move on. And they won’t come back, even if you lower your price later.
How to price your home right from the get-go
If you’re working with a real estate agent to sell your home, he should tell you what the market value of your home is, so that you can set a competitive price right from the beginning. If you’re not planning on working with an agent -- or at least not yet -- you can visit www.MyPhoenixMLS.com for a free market snapshot to estimate your home’s value.
. . .But don’t be afraid to reduce the price
Absolutely you should price your home competitively from the start. But if you’re still not getting any nibbles of interest, you should consider reducing the price.
And you should do it quickly. 90 days on the market is about average in Phoenix right now, so give it at least 30 days before you make a price reduction. But don’t delay beyond that. Homes that languish on the market for much longer than average often are forced to make one price reduction after another, as buyers and real estate agents may begin to question why the home has been on the market for so long.
What do you think? Have you been trying to sell a home? Click on the “Comments” link below and join the discussion!
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