Seller, you may already know this sad reality, but Trulia.com recently announced that more than 30% of listed homes in 20 of the largest American cities have had at least one price cut. Cutting prices is never fun for the seller, but on the other hand, doing so can entice a buyer who’d otherwise never look twice. And sometimes, selling really is necessary: not everyone can list a house at his or her chosen asking price and simply wait, arms crossed over chest, chin set in stubborn determination, until the market recovers and all power returns to the seller.
So how can you tell when it is time for a price reduction? Trulia offers five common sense signals that you may need to lower the list price of your home:
1. Multiple listing agents told you to list it lower.
Hopefully, you interviewed more than one agent to get their marketing plans and marketing analyses before you listed your property. Some agents will have different strategies for price setting. Some will base their recommendations on comps; meanwhile, some will recommend sellers list lower than market value to generate multiple offers. In the end, these recommendations are just that: recommendations. As the homeowner and seller, the ultimate list price is your decision, but make it an informed one.
2.Broker feedback says so.
Since over 80% of qualified homebuyers already have an agent, open houses are a great way to expose an available property to interested (and qualified) buyers. However, broker open houses can also provide very valuable pricing feedback. After all, if the buyers have a broker telling you or your agent that your home is overpriced, that is exactly what s/he is telling the buyers too.
Also, if your home is not selling, your listing agent can and should contact the agents who have shown your home to their clients, but failed to make offers, to see if the price was an issue. Read more.
