Mar 14, 2012

Should you reduce the price of your home?

I'll be the first to admit that some homes take longer to sell than others because they are unique. I know, every house is unique. But I mean really, really unique. And unique in a good way. That means it is 100 years old with original details or it is valued over $4,000,000 or it is on acreage in the city,... that kind of unique.

The 99 percent of Dallas homes that don't fall into a unique category should sell in less than 6 months on the market. Regardless of how long your property has been on the market, 20 to 30 showings is usually enough to sell it. Those are in-person, made-an-appointment and looked-at-it-with-an-agent showings (not open house visitors or internet clicks).

If enough people have seen your home to buy it and they haven't, then the market is tell you something. They're saying 'We don't like your house enough to buy it at this price'

You need to reduce the price. Period. Whatever reason that you think it is worth more, doesn't matter. The buyers don't agree.

How much should you reduce it? It depends on how overpriced your property is. And how motivated you are to sell. That said, you should reduce the price 5% to 10%.

Don't be foolish like these people: (LP means List Price)

A tiny reduction just tells people that you aren't serious.

But on the other hand, think twice before you make a huge reduction like this:

or this:
A huge price reduction says you are desperate.

Don't leave money on the table, but don't be so greedy that you end up selling for even less after months and months of waiting. Reduce the price 5 to 10 percent and place it into a new price category so that a new market of buyers will see it

Listen to your agent, who should be telling you that 3 main factors determine if and when your property will sell. Price, Condition and Location. You can't change the location. So if your home is in nice condition, then that leaves PRICE. Lower it.


Honolulu real estate said...

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roofing York Maine said...

Great post. I'm a roofing and general contractor in York Maine, and whenever one of our customers is trying to sell a home for long periods of time we often encourage them to slightly reduce their price. It's always the one factor you can control.