Most homeowners don’t want to accept the hard truth that they might need to lower the asking price for their home because it had been staying on the market for some time now.
Besides, it’s quite difficult for homeowners to decide when they should reduce the price. Here are a few tips to know when exactly you should consider this:
• If a lot of people are visiting your home, but walking away without showing any interest, you should be alarmed because something is definitely wrong. Don’t just assume what might be wrong. Instead ask buyers and their agents for feedback. Look for common negatives.
• Most homes with the right price tag get sold within the first few weeks. If your home has been on the block for more than five weeks, it’s time to consider reducing the price. Under certain circumstances, you may have to even take it off the market for a while and list it again.
• Keep a tab on market trends in your area. If you are selling in a buyer’s market, you may have to consider reducing the asking price. It is particularly true if the market’s condition changed in the past few weeks since you listed the property.
• The best way to decide whether you should consider reducing the price is comparative market analysis. If a home of similar size and location sold quickly, and yours is sitting on the block, you should pay close attention to the comp’s closing price.
You should also study how many homes had a price reduction in your neighborhood, and how long it took for the price cut? Did it help them sell? Again, what was the sale price?