Here’s how to know when it’s time to lower your house’s sale price.
When should you lower the price of your for-sale home? This is always a difficult question because you’ve had your house on the market, you thought it was going to sell, then you eventually realize that it won’t sell as is. When deciding whether to reduce the price, you should consider three things:
1. Are you getting showings? If you aren’t getting showings, this is a good indicator that you need to lower the price. You should get showings within two weeks of being on the market and have at least one showing per week.
2. Are comparable homes priced for less? If there are comparable homes in your neighborhood that are priced for less than your house, you should probably lower the price immediately, especially if you’ve had no showings.
3. Are you getting offers? If you haven’t gotten an offer in about two weeks and there are comparable homes for less (whether you’ve had showings or not), you should think about reducing the price. However, if you have a luxury home (or your house is worth more than $500,000) you should get an offer within a month. If your house is worth $800,000 or above, you should get an offer within the first two or three months.
Talk to your real estate agent, monitor your showings and offers, and look for comparable homes in the neighborhood to keep track of when may be the right time to lower your house’s sale price. Unfortunately, you may have to face the music, and it’s better to do so quickly so you can achieve your goals. Don’t let your property just sit on the market—it may never sell.
If you have any more questions about lowering your home’s price or concerning real estate in general, please give me a call or send an email. I would love to help you.