When should a home seller drop their price?

Reblogger Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
Real Estate Agent with United Real Estate TX #0552717

This is a "must-read" for every home seller.  Sage advice. Listen to the feedback if there are showings, listen to the lack of feedback if there are no showings. Watch what's happening in your marketplace. Drop the price if you're home has been on the market for a while.

Original content by Bryan Robertson CA BRE #01191946

Deciding when to drop the listing price is difficult because it depends on the region and market.  There's no one formula that will work across the board.  However, there are guidelines that I think work in most situations.  Here are a few standards I think work everywhere...

When the feedback says "It's too high!"

If the agents and buyers are coming back with pricing suggestions or verbal offers, and those are in line with the comps your priced above, then you're priced to high.  That's the point you should drop the price.  Don't wait for "the perfect buyer" to come along - it'll never happen.  You'll increase the chances of a sale by dropping it immediately.

When you haven't had a showing in 30 days

With the exception of open houses, which don't count, if you haven't had a call to either preview with an agent or show a client, you need to drop the price.  Regardless of the price range, if you're not getting at least one showing a month, the price is too high.  If it's priced right, you should be getting a lot more showings.  How much to drop depends on the property but drop it enough to get showings.

When a similar property sells for less

If a property in the same market that is a good comp sells for less than your asking price, drop the list price to capture buyers who were looking at that other property. If you want a little negotiating room, fine, but come to within 2% of the other listing price as soon as that home goes to "pending sale" status.

When the last price drop was 90 or more days ago

If the last price reduction was 90 or more days ago and you don't have a serious buyer on the hook, drop the price.  Even if a buyer is considering the property, drop the price.  Dropping the price will engage more buyers and existing potential buyers will be motivated to write an offer before someone else does.  I've seen sellers sit on properties for months while potential buyers make up their mind.  The result:  wasted time and opportunities.

When you list with me, I'll work with you to price the home right to start.  However, if the price starts out higher, I'll walk you through all the data-driven rationale behind bringing your price down to get a buyer.


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 Bryan Robertson, Broker Associate | T: 650.799.9951 | Email: bryan@serenogroup.com | Website: http://www.BryanRobertsonHomes.com |CA License: 01191946 | Sereno Group - Los Altos branch | 369 S. San Antonio Road | Los Altos, CA 94022

 

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Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Great choice for a reblog, Lorrie.   Bryan has put together a great list of reasons for dropping the price.

    

Feb 03, 2012 12:59 PM #1
Rainmaker
1,676,510
Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

The only thing well maybe no the only thing i have to add sort of speak is the short sale dilemma we all find ourselves in. With the fine tuning of marketing these sales I'm not hearing about these items at least on the lower price point properties. Here in S. Florida there is not that many of them yo worry about moving.

Feb 03, 2012 01:11 PM #2
Ambassador
1,156,737
Bryan Robertson
Los Altos, CA

Thanks for reblogging Lorrie!  There has been a lot of good feedback on this topic.

 

Feb 04, 2012 02:24 AM #3
Rainmaker
1,075,962
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Remember the days when they told us to drop the price, if there had not been an offer in 10 days?

Feb 04, 2012 06:10 PM #4
Rainmaker
1,297,886
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

Sharon: I thought it was 10 showings or an offer within a month.

Feb 05, 2012 02:54 PM #5
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Rainmaker
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Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

Real Service. Real Results. Real Estate
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