Property Management Blog

How do I know if/when I should lower my home price?

System - Wednesday, October 3, 2012
Sellers cannot change the location, layout, or lot size of their property. However, one thing sellers have complete control over is the listing price. Although no seller likes to lower the price, in a buyer’s market, it is often the best catalyst to sell. Here are some indications you may need to lower your price. Remember, you have the same goal as your REALTOR® to sell your property for the best possible price in a reasonable amount of time. Be open to suggestions and rely on the experience and success of your professional REALTOR®.
  1. You have a lot of potential buyers who have come through your home, but you have not received offers. This may be sign that potential buyers are waiting for you to lower your price.
  2. Ask your REALTOR® the average time comparables in your area were on the market before selling. If your home has been on the market for significantly longer, and is sufficiently advertised, without generating interest, it may be time to adjust your price.
  3. If you are not getting traffic or offers you may have priced yourself out of contention for your target audience. If you have a starter home with two bedrooms and one bath, with the price tag of a five-bedroom three-bath home, potential buyers will not make offers, let alone come for a viewing. Be realistic when pricing your home or be prepared to languish on the market.
  4. Your competition wins. Visit open houses in the area that are in the same price point and decide how and if your property compares.