When Should I Reduce My List Price?

It can be disappointing when your home isn’t selling as fast as you thought is was. When you set a listing price for your home, unless you and your agent misread the market, you expect your home to sell by a certain time. So what do you do when your expectations haven’t been met yet? It may be time to reduce your price and re-think the marketing strategy. It’s important to understand when it’s a good time to reduce your price.

Price Reduced words on a home for sale sign to illustrate a home owner in distress and needing to sell immediately as a short sale or negotiated lower value to the right buyer

Good Ole’ Supply and Demand

In today’s market, there is relatively low inventory, and lots of buyers. Homes are selling fast. So when your home is in a hot market, and it’s not selling, the market is trying to tell you something: your home is overpriced. If you aren’t seeing much activity in your home, or have been getting feedback from buyers that are expressing it’s over priced, it’s time to sit down with your real estate agent.

Hurry Up & Wait

If your home has been listed on the market for what is considered to be a lengthy time for your area, it may be time to consider a price reduction. This is especially true if you are in a hurry to sell, which may be the case if you are planning to purchase another house upon selling yours. In some cases, a homeowner will make an offer on another house and that offer will be contingent upon selling their current home. When this happens, the homeowner is likely to be in a hurry to sell so that they can honor the terms of their new agreement before it expires. Real estate can often be a waiting game, but sometimes it may be necessary to hurry up the process, through a price reduction, if you need to complete the sale.

Adapt to the Always-Changing Market

We all know how the market fluctuates. If you own real estate, property values can go up one year and fall the next. If your house is currently listed and the property values have fallen, you may want to consider reducing the price in order to remain in the running with potential home buyers. If your house is priced far above market value, most lenders would refuse to approve a loan for your asking price. Having an appraisal would be one way to know how much your home is worth.

What Does Your Agent Say?

If you’ve hired a real estate agent, you obviously trust him or her to guide you through the process of selling your home. If your real estate agent suggests a price reduction, it may be in your best interest to consider it. Nobody knows the business like a real estate agent. They know what buyers want and, in most cases, what they are willing to pay. If you’ve trusted a real estate agent enough to hire them, trust them enough to value their opinion.

Looking to buy or sell a home in the MetroWest area? Real estate agent Robert Brown of RE/MAX Executive Realty services areas such as Hopkinton, Hopedale, Milford, Upton, Mendon, and many more. To learn more about MetroWest real estate agent Robert Brown, please visit the Meet Your Agent page on SellMyMetroWestHome.com

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