By Edward Hurley
It can be difficult to reduce the price of your home. You talk with an agent. You picked a price that you believed was reasonable in your area for your home. However, no one makes an offer after several weeks on the market. Looks like it’s time to reduce the price of your home. Even if you do not want to, you may have to reduce the price just to sell your home. Here are some scenarios to consider when it’s time to reduce the price of your home.
When to Reduce the Price of Your Home
If you’ve shown your home a few times, and 20-30 guests have already come in and out of it without making an offer, then it’s time to reduce the price of your home. Even if they haven’t said that the price is too high, the fact that they will not make you an offer is because the price is nowhere near what anyone is willing to pay for your home.
Talk to your agent about how you should reduce the price of your home. Ask them for advice; their expertise and seasoned experience should allow them to come up with a solid number on what your home is worth as well as how much you should sell it for.
Compare Your Price
Take a look at what some comparable homes in your neighborhood have sold for. What was the price point? Were they about the same size and in the same area as your home? If so, you may want to price your home around the price that they sold.
Look at Active Listings
Be sure to take a look at active listings on the market as well. If you see an active listing set around your price range, then you know that you’ve set your home at a good price. Perhaps you just want to sell your home too quickly. If it’s reasonably priced for your neighborhood, give it some more time.
How Much Should You Reduce?
Let’s say your three-bedroom home is listed for $202,000. Sounds like a fair price. However, let’s say that the average listing surrounding your home is $190,000. Even if your home is much nicer than the average listing in your area, you are still at a $10,000 price over the average listing price. So how should you reduce the price of your home now? A good rule to follow is to reduce to the next $10,000 neighborhood-price range below your current listing price.
Since all of the homes in your neighborhood are at a $190,000 price range, you should reduce the price of your home to the $199,000-$190,000 neighborhood-price range as well. Try lowering your home to around $199,000 or 198,000. Even though that is only $3,000-$4,000 less than $202,000, there may be some buyers out there who want to stay within the $200,000 neighborhood-price range of your area. So by reducing the price of your home listing into the $10,000 neighborhood-price range, you will now see more buyers interested in your home simply because it is under $200,000.
So if your home is way over the neighborhood-price, talk to your agent about lowering the price. They’ll guide you with as much advice as you need to go about pricing your home. Always make sure that you have the right expectations about your real estate investment, and you will see great results.
Other Reasons Why Your Home Won’t Sell
Wait! My home is listed for around my neighborhood-price range. In fact, it’s listed lower than most of the homes in my area! Why won’t it sell?
Great question. Let’s take a look at the other important factor to getting a buyer to make an offer on your home. Did you prepare your home for the open house, or did you leave all of your personal items out for display along with those old chairs that you won’t get rid of? Well, there’s your problem. Talk to your agent about staging your home for your open house, and you should be able to attract buyers interested in your home.
Whatever the reason your home won’t sell, try to put yourself in a buyer’s perspective. If you do, you will see all of the things that you should do to make your home the best possible choice for the future buyer. Just make sure to reduce the price of your home if necessary.
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