Price It Right The 1st Time Or Try, Try Again...

By
Real Estate Agent with New Jersey Properties 8333464

Every homeowner must set an asking price when they first list their home for sale, but what happens when you don't receive any offers? Just as it's important to know when it's time to sell, it's important to recognize the right time to adjust the price.                                         sold

Supply & Demand

If a lot of homes are currently listed on the market or your home is overpriced, it may be time to consider a price reduction if you hope to stay competitive. If you were shopping for a car & 5 different dealers offered the same make & model at different prices, what would motivate you to buy from one over the others? If you are like most, the cost would be a leading factor. The same is true with home buyers, who are looking to get the best value for their dollar.

Hurry Up & Wait

If your home has been listed on the market for what is considered to be a lengthy time for your area, it may also be time to consider a price reduction. This is especially true if you are in a hurry to sell, which may be the case if you are planning to buy another home once you sell yours. In some cases, a homeowner will make an offer on another house & that offer will be contingent upon selling their current home. When this happens, the homeowner is likely to be in a hurry to sell so that they can honor the terms of their new agreement before it expires. Real estate can often be a waiting game, but sometimes it may be necessary to hurry up the process, through a price reduction, if you need to complete the sale.

Market Value Fluctuations

We all know how the market fluctuates. Home values can go up one year & fall the next. If your home is currently listed & the property values have fallen, you may want to consider reducing the price in order to remain in the running with potential home buyers. If your home is priced far above market value, most lenders would refuse to approve a loan for your asking price anyway. Having an appraisal  or a new comparable market analysis would be one way to know how much your home is worth today.

Your REALTOR® Knows Best

If you've hired a REALTOR®, you obviously trust them to guide you through the process of selling your home. If your listing agent suggests a price reduction, it may be in your best interest to consider it. Nobody knows the business like a real estate agent. They know what buyers want & in most cases, what they are willing to pay. If you've trusted a REALTOR® enough to hire them, trust them enough to value their opinion & act on it sooner than later. Adjusting the price will open your home to a broader pool of buyers, increase showings & most likely result in a sale!

Posted by

Joan Congilose, Broker/ Sales Associate

my picCentury 21 Action Plus Realty

Call or e-mail me Office (732) 462-9510 Cell (732) 232-5277

jcongilose@actionplusrealty.com

www.joancongilose.com

 

Comments (3)

JOSH EVANS *JoshEvansHomes 516-655-5000
Village Properties of Mineola, LLC - Mineola, NY
Great job and great blog. Keep up the good work and good luck to you this year. Thanks
Jul 08, 2012 09:48 PM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Joan -- the market and the timing are crucial to examine when pricing a property.  I believe that a home that is well-priced and well-presented from the start has the best chance of selling quicker and for a higher price.   Testing a price or not really being in show-and-sell-ready condition are two of the biggest reasons why a home does not sell in a time frame that works out best for a homeowner.

Sep 12, 2012 11:09 AM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Good post.  It can be really hard for some sellers to understand about pricing too high, and what will happen when they do.

Sep 23, 2012 06:57 PM