Every home seller expects their house to sell right away, especially if you live in a fast-pace real estate market. But what do you do if those offers don’t start rolling in as fast as you expect — or at all? Nationwide, 12.9 percent of sellers generally lower the price of their house at least once. If you’re thinking about doing a price reduction, consider this: the longer a home is on the market, the lower your odds are of selling it for list price.
Our Laguna Niguel Real Estate Agents say that sellers who accept an offer within the first week of listing have a 57-percent chance of selling for list price. During week two, it’s 50 percent, and then it drops to 39, 32, and so on.
Of course, this is based on national data, and if you live in a strong sellers market, your odds of selling for list price, and quickly, are much higher. So is it the right time for you to think about a price adjustment? Think about these factors:
A few indicators your home needs a price adjustment
Nearby Comps are Priced Lower
Of course, when you select a list price for your home, you want to get as much profit as possible, while still being competitive with other listings. How to price your home to sell is a bit of an artistic form, and that’s why many sellers end up adjusting their list price within a few weeks.
Our Laguna Niguel Real Estate Agents suggest you take a second look at other comparable homes for sale in your neighborhood. Is it possible you priced your home too aggressively given your current market? Or are other similar homes selling a bit quicker?
You’re Not Receiving Offers
While there are a variety of reasons why nobody’s biting on your home, price is often the culprit. If buyers feel like they can find a similar home at a better value, they’re unlikely to put in an offer, or even set up a showing.
Our Laguna Niguel Realtors suggest that if people are viewing your listing online but not submitting an offer, or if you’re getting open house attendance but with no results, your price typically can be one of the problems.
You’re Having Few Showings
Talking about showings, the foot traffic coming through the door is an amazing indicator of the attractiveness of your list price. Open house and showing traffic tend to drop off after the first two weeks, so you’ll know pretty quickly if your price isn’t resonating with buyers.
Your Home Appraised Low
A majority of Laguna Niguel Realtors will tell you that savvy sellers often pay for their own appraisal before they list as a way to get an objective opinion on an appropriate list price. If you haven’t gotten an appraisal already, it might be money well spent.
If the home appraises well below your asking price, then you have your answer. Or if you’ve had a contract fall through due to a low appraisal from the buyer’s appraiser, that’s another good indicator that a price adjustment might be a good idea.
Marketing Steps to Take Before a Price Reduction
Prior to taking action in lowering the price of your home, you’ll want to take a step back and make sure that the price is really the issue, and it’s not an issue of ineffective marketing.
- Load up the photos and videos: Although your home may be a gorgeous person inside, if your listing has low-quality photos (or worse, none at all), you’ll never get buyers through the door. Professional real estate photos are always worth the money, especially in a competitive market. And consider adding a 3D Home virtual tour to help buyers get a better feel for the home’s layout.
- Make sure your online listing is complete: Make sure your listing description is putting your house in its best possible light. Be sure to showcase the home’s best features, share information about what makes the neighborhood special, and pack it full of the keywords buyers love. A local real estate agent should be able to give you insights into the most popular home features in your area.
- Make sure your home is listed in multiple places: Whether you’re working with an agent or selling for sale by owner (FSBO), you should make sure that your home is showing up in multiple places, including on your local MLS, on Zillow, on other real estate search sites, and on social media. If you’re using an agent, touch base with them about their online marketing plan for your home.
- Post signage in prominent locations: According to Zillow research, 55 percent of recent buyers said that for sale or open house signs played a role in their home search. Make sure you have plenty of visible signs around the neighborhood, with way finding signage for open houses, especially.
- Address buyer feedback: Individuals who have toured your home but didn’t end up making an offer are a great resource. If you set up these past showings yourself, our Laguna Niguel Realtors suggest you think about asking for feedback directly. If you’re using an agent, ask your agent to follow up after showings and ask for constructive criticism. Then, take action on any fixable pieces of feedback — and try not to take it personally.
Great Strategic Price Reduction Ideas
Act fast: As our Laguna Niguel Real Estate Experts mentioned before, the number of showings and open house attendees drops off drastically after the first few weeks your listing is active, so our Laguna Niguel Realtors suggest you don’t wait to take action. If you’re realizing you need to reduce the price, we highly suggest you don’t wait.
Be realistic: When talking about what your new, lower price will be, our Laguna Niguel Real Estate Agents recommend that you make sure you are quite comfortable with the amount. What’s the lowest you can accept and successfully move on from the sale? Technically speaking, it’s not a good price if you’re not realistically able to take the amount.
In addition, make sure you get clues from recent sales to gauge your timing and discount. Our Laguna Niguel Real Estate Agents suggest you only lower the price once: Nobody likes to make a price cut, so sellers are often inclined to make multiple small price adjustments to ease the pain.
Avoid this strategy — it can take a variety small reductions before buyers finally take notice, so you’ll only end up prolonging the sales process. Instead, decide on a cut that’s significant enough to jump-start interest in your home.