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Selling Your Home - When Should You Reduce the Price? (Part I)

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Real Estate Agent with eXp Realty - Urban Nest Real Estate Group GA# 305421

Selling Your Atlanta Home - Homes for Sale in Atlanta & Decatur GATop atlanta real estate agents brokers

THE BIG QUESTION:

When selling a home, how long should we wait before reducing the price? 

When pricing your home, there isn't a magic formula and every home or condo is unique, BUT there is a significant amount of data that tells us that if your home hasn't received an offer within the first 2 or 3 weeks of listing your home, it is probably overpriced.

National Association of Realtors (NAR) research revealed that if a house is on the market for more than three weeks, the house is probably overpriced by 2-4 %.

Of course, these are national statistics and real estate is LOCAL.  After years in the Atlanta real estate market, I've found that if your home is staged and marketed correctly, the home is most likely overpriced (by how much will vary by neighborhood).

With this rollercoaster real estate market, it is important to keep your price in line (or slightly below) the comparable homes in your immediate area.  So even though you may have priced the home "correctly" on August 1st, the price may be a bit different on September 1st.  You and your real estate agent have to keep an eye on new listings, foreclosures, pending (under contract) homes and recently sold homes. 

In the past, I would update my sellers with the latest sales data every 2 - 4 weeks.  Today, it's another story.  If you are working with a good real estate agent, he/she should have the tools or systems in place that will notify everyone the moment a comparable home is listed, under contract, etc.  As a home seller, you don't want your home to be overpriced for even ONE WEEKEND in the current market.

It's not just about keeping up with the competition...in today's market it is about STAYING IN FRONT OF THE COMPETITION.  For example, let's say that 3 homes have sold in your neighborhood in the last 3 months (one per month) and there are 25 homes for sale.  You, the seller, have a 1 in 25 chance of selling your home each month.  (ouch)

SO.... WHEN EXACTLY DO YOU REDUCE THE PRICE?  

Stay tuned for Part 2 of "Selling Your Home" 

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Posted by:  Kerry Lucasse - Metro Atlanta GA Real Estate Agent - Atlanta Home Search Team
The ATL Home Search Team is part of Keller Williams Realty

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Kerry Lucasse  ::  eXp Realty ::  Urban Nest Atlanta Real Estate Group

Call anytime @ 404.432.1844

Urban Nest Atlanta Real Estate Group - eXp Realty GA

  

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In & Around Atlanta Real Estate Blog - Copyright 2006 - 2020 by Kerry Lucasse and the Urbanest Real Estate Group with eXp Realty LLC in Atlanta, GA.  All information contained in this blog is deemed to be reliable but not guaranteed.   If you need assistance with Intown Atlanta real estate, Kerry Lucasse and her team are always available to assist you with your residential real estate needs!

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Show All Comments Sort:
Quincy Smith
Sage Smith Realty - Yuma, AZ

Hi Kerrry - I enjoyed your post.  Even with all the sales data it is a true challenge to convince Seller's to price their homes correctly in this market.  I look forward to part 2. Great Post.

Sep 02, 2010 04:51 AM