Reasons to Lower Home Sale Price

We all believe our homes are amazing, that’s why we bought them right? So when it comes time to sell we think it will happen very quickly and we can move on. So if your home isn’t selling, it’s time to start looking at what the issue could be. Sometimes it’s something you can’t control, like a layout that will only work for a specific segment of the population, that fact that you are the only house on the block without a garage, or the new 24 hour business that is opening up down the street and bringing noise with it. Too often however, it is the price. So how do you determine whether lowering the price is the right choice?

You Aren’t Getting Showings

If clients are not begging their Realtor to show them your home, they are typically saying it is overpriced. Even if they are calling their real estate agent, the agent could think it is overpriced and show them the houses that are similar but priced well instead of taking them to your house. Either way, if no one is coming to see your home, you have a pricing problem. A good agent will have an idea of how many showings are typical for a week or month, and let you know that if these goals are not met, then it might be time for a price change.

You Have Showings But No Offers

On the other end of the spectrum, if you have lots of showings but no offers, it’s time to start thinking about a price change. In this scenario there is typically appeal but something about the house has lowered the value in potential buyers eyes. Maybe it’s repairs that need to be done, or neighborhood issues, or 500 other things. What they are telling you is that the only thing that will help overcome the issue, is a lower price. A lot of this information is usually received as feedback from the agents that bring buyers through your home. Sometimes you can address the issue, like replacing carpet, other times a price drop is the best choice.

You Have a Deadline

Sometimes, you just need to move, NOW. Whether it is a job transfer or expanding family, if you need to move and your home still isn’t sold, it is time to reevaluate a drop in the price. A good agent will understand your timeline and prepare a set of price drops in advance (and have talked to you about this ahead of time!)

The Market Has Changed

Probably the hardest thing to keep up with in real estate sales, is the changing market. Your home could be getting viewings and positive feedback, and then, BAM, an identical house goes on the market 2 blocks away for $20,000 less. Now you are competing with that house, and probably losing. It can be tempting to just ride it out, wait for that house to sell, cross your fingers it happens quickly, and then you are back in the running. The problem is that your days on the market go up and buyers and Realtors will wonder what is wrong with your house. As soon as they pull comps they will also see what that neighboring house sold for and expect a similar sales price for your home. Staying ahead of the market is important in this scenario and a good agent will keep you updated on any changes and strategies that you should take into consideration.