When do I need to lower the price of my house?
First of all, as a home seller, you do not have to lower the price of your house, but you may need to in order to find a buyer! When REALTORS® list a house there are many factors that are considered. We rely most heavily on the most recent sales around the house - homes in the same subdivision, same size, and same amenities. Many times, a lot of weight is placed of the living area square footage. Other times the seller insists that their house is better than any others that have closed, so their house should be priced higher. And sometimes the house has more amenities than the others in the subdivision, so we want to give those updates some extra value. In the end, together we just make a judgment call for the listed price based on the information we have.
Once listed, if you have had 10-15 showings and you don't have an offer, then price becomes the issue. NOTE: Price and Location attract buyers to see the house in person, however, once they are inside the house it is all about Price and Condition. So, if you have a good amount of showings and no offers, you have to do something - or you will continue to get the same results! You have to adjust the price to find the sweet spot where the buyers are shopping for YOUR house.
If the condition of the property is not as updated or as well maintained as the homes that are closing, then that might be the best option - spend a few dollars updating and repairing and make it sell!
The next possible issue might be that the real estate market starts to change and the price you started with is no longer in line with the most recent sales. That's why we have to look at the market monthly to see where it is headed. You want to jump ahead of a downward trend instead of chasing it and being behind the competition. We call that "chasing the market."
Keeping everything the same, with price and/or condition, will generate the same results! So, what's your best course of action? Give me a call and together we will look at the market and determine the best price to start with - and if the market rejects it - then we move on to a different price to REPOSITION your house in the market. That's how you get your house sold!
Call me anytime for a free consultation or to get our FREE book, Consider it SOLD!, the Ultimate Guide to selling your home!