There is no question that 2017 was a seller’s market. A recent study by the National Association of Realtors, revealed that 99% of listings received their asking price. However, sellers should be careful in having exorbitant expectations on what they can fetch for their home. While housing inventory has been limited, buyers simply won’t pay just any listing price because it’s a seller’s market. There is far more information today available to buyers than ever before. They’ll likely know the value of every house on the block and suburb.
The risk of leaving your asking price too high for too long can keep your home from selling. Potential homebuyers are likely combing through the local home listings weekly if not even daily. If your home keeps popping up, because your initial price was too high it can become a downward spiral of people avoiding your property … simply because no one else has bought it.
So the question arises – if I’m being aggressive with a high list price, when should I consider dropping it to get more interest from buyers?
Rebranding Your Listing?
If your home has been sitting on the market for two weeks without a lot of interest, then it’s time to reconsider how you’re branding your home. The important thing is to listen to your realtor. A lot of homeowners have strong opinions on how their home should be marketed and priced, but the real estate agent does this every day.
Trust their instincts.
At that two-week period of inactivity, have an earnest discussion with your real estate agent on what is working and what is not with your property. Letting your home sit idle for much longer will make your listing stale. Remember, real estate websites have search functionality based on the listing date. You don’t want to slide to the end of the searches.
Asking Too Much?
Start with the data. Examine how other homes for sale in your area are performing. Try to match your home as closely as possible, particularly in bedrooms and bathrooms, which are often the criteria for buyers short-listing properties that seem like a good fit. If your home is on the high-end, identify what qualifies your home for a higher price.
Is it the custom kitchen? The extra living spaces? The expansive backyard?
Make sure to sell the differentiating factor is as clear as possible in the ad for your property within the listing title and in the first few sentences in your property description. Otherwise, you’ll need to consider cutting your asking price to conform with other homes in your area.
How Much to Drop?
The good news is that you rarely have to make a massive reduction in your listing price to get some interested buyers lining up at your door. Most realtors recommend a cut of just $5,000 to $10,000. Keep in mind how searches work in real estate websites. Most have brackets of price ranges in $25,000 or $50,000 increments. Look to get into the next lowest threshold if you can, which will make your home appear before a whole new group of buyers.
Pacific Union Financial
Pacific Union Financial, LLC is a full-service mortgage lender providing mortgages, refinancing, and loan servicing across the country and around the corner. With expertise in home loans for credit levels from best to bruised, we’d love to help you enjoy all the benefits of homeownership. Get in touch today and let us show you how we work hard to make mortgage easy.