Dropping the price of your home can help you sell.
One of the hardest decisions to make when selling a home is trusting that it has been priced correctly for the market conditions. A licensed REALTOR® is most qualified to help you make that decision. Sometimes, though, the price just isn’t bringing buyers in, or the market conditions change, or the timing of your move changes, which requires a faster sell. When is the right time to drop the price of your home?
There are a lot of unknowns when selling a house since potential buyers change by the day (as does the competition). But there are some basic standards that many agents follow throughout the country.
- Re-evaluate your listing price every 3-6 weeks, compare your situation with similarly priced homes and then decide if a price reduction makes sense.
- If your home is getting lots of showings and action, good feedback, but no offers, a small price reduction of 1-2% might be enough to get someone who has seen the home, to bite.
- If your home isn’t seeing a lot of action and is getting so-so feedback, a greater reduction of 5% might be your best option.
- No showings – you are not priced right, so reduce it about 10% and see if you get people through the doors.
Other things to consider:
Small price drops, depending on the market, can just prolong the time it takes to sell your house. If you are in a hurry to sell and move, a bigger reduction might be necessary.
Buyers tend to shop in $25,000 increments (that’s how the online searches tend to operate). So dropping a home listed at $235,000 to $229,900 might seem like a good price drop, but it hasn’t opened up your home to a new set of buyers. A new list price of $224,900 would show-up for all those buyers in the $200,000-225,000 price range – one of whom might LOVE your home.
It’s a hard decision to lower your list price. YOU love your home, you feel like it’s worth every penny of its list-price. But this is when you need to trust your REALTOR® to guide you through the selling process. A home priced right, will sell.
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.