Home Selling 101: When to Consider Lowering Your Asking Price
Every seller wants to get the highest price for their Waterloo Region home. Unfortunately, sometimes the best possible price is not the price you were hoping for. If your home stays on the market for an extended period and you really want to sell, you are going to have to drop the price. But when? And why?
When people ask “when should I reduce the price of my home” they are often looking for solid reasons why they should do it at a certain time. Here are some considerations to think about whether it might be the right time to drop your price:
There are not many showings
Not having much activity is a solid indicator that something is wrong and it more than likely is the price. The first few weeks your home is listed should be the busiest. Buyers want to get out and view the newest listings right away so they don’t get snapped up by someone else.
If your home is not getting this initial surge in traffic you may have priced it too high. All those potential buyers could be lurking out there, waiting for you to drop your price. Remember today’s buyer has access to all kinds of information online and an increasing number are very savvy on home values.
You are running out of time
In some circumstances, there may be a need to sell a home quickly. There are plenty of situations where selling as soon as possible is a goal. If you have a specific need to sell quickly due to some future event it is probably better to reduce sooner rather than later.
There could be any number of reasons including moving because of a job change, family, you are going through a divorce or maybe you found a home and need to sell before buying. It could be worth it to lower your price just to keep your life in order and have less stress.
Lots of attention, no offers
The flip side to having few buyers looking is having a lot of interest – only no one is putting in any offers. Your home may be really appealing in a lot of ways, but if the price isn’t right buyers will purchase elsewhere.
You don’t want your property on the market any longer than it has to be. If you are garnering tons of interest buy no offers, consider dropping the price of your home.
No money to make repairs/improvements
Some homeowners have not done much to their homes over the years. There may be major updates needed that you just don’t have the money to do. Maybe you have dated bathrooms, a heating system on the way out, an old roof, or dated wallpaper that needs removal.
All of these things buyers will notice and play a role in what they believe your home is worth. If you are not in a financial position to correct issues with your home, you really can’t ask for a price that does not account for these deficiencies. You may have tried pricing taking these things into account but it may not have been enough. Keep in mind a significant percentage of buyers want turn-key homes and will discount heavily when looking at homes that need updating.
The market is changing
In times where you are in a changing real estate market, it’s possible your home can drop in value while it’s listed. You may have listed your home at a reasonable price but moving forward real estate values, in general, have dropped. So the reasonable price you started at doesn’t look that way now. Other homes in your area may have dropped their price, making yours look expensive. And there’s not much you can do in this situation but drop your price to become competitive.