When you have your property for sale, it is always painful to think about reducing your price. It feels like you are deliberately taking money out of your pocket. This decision is usually accompanied by doubts about whether it is the right thing to do. If you are getting a decent amount of showings, but no offers, you wonder if the Realtor® is not doing their job. Or, it may be the economy or consumer confidence.
We most often like to look elsewhere for a solution rather than considering a price reduction. The following factors may help you decide whether or not a price reduction is in order.
Showings
If you are getting many showings, one or more factors may be involved. The local economy may be slow, adversely affecting all real estate currently for sale. Your particular price range may not be moving as well as others. Your particular location may not attract as many buyers as areas that traditionally have greater interest. Your home may be overpriced when compared to similar home now for sale.
Offers
You may be experiencing many showings, but no offers. The problem lies in one of three areas. Price, condition or location. If your property is located in a terrific area and has no major design or condition defects, your asking price is too high. If your area cannot sustain your asking price, you must reduce to bring your list price in line with your location. If your home requires improvement in its condition or décor, you can either spend money correcting the problem or reduce your price to encourage a buyer to make correction at their expense.
Realtor Efforts
If your Realtor® has made reasonable effort to attract potential buyers to see your home, the next move is up to you. Many times homeowners blame a lack of showings and or offers on the Realtor®. Sometimes this may be justified. It is also important for the homeowner to provide a property that is attractive and reasonably priced.
