We take price very personally; perhaps a bit too personally at times.
You know how much you paid for your home, how much of an upgrade it was from your former residence and all the tender loving care you have poured into it over the years. You are a hard worker who likes to keep things organized and functioning. Property upkeep is at the top of your list. You take good care of the things you own.
Then, one day, your Real Estate agent tries to nudge you in the direction of a price reduction. Say what? This is my castle, the best maintained house on the block. It represents our values and ability to care for ourselves. Lowering the price would be like saying we have low standards! Right? Wrong.
Lowering your price at the right time and to the right amount is a sign that you have the wisdom to adapt to the market. And if your agent suggests it is time to reconsider your price, be assured that it is a sign he or she is actively working in your best interest. This is a good sign.
Here are a few more thoughts on the matter, for your consideration. According to a Wall Street Journal article dated July 15, 2010, it makes sense to lower the price when:
- Multiple listing agents have recommended listing the home at a lower price.
- Feedback from the buyers’ agents suggests the home is overpriced.
- The home isn’t getting any showings, even though it’s marketed well.
- The home has sat on the market far longer than other homes in the area.
- There’s been multiple offers, but they’ve all been significantly under the list price.
How soon should you lower your price? A Zillow article dated May 15, 2010 suggests these general guidelines: “If you’ve had no showings in a few weeks the market is telling you your home is drastically overpriced. If you’re getting showings and shows well, but no offers, it means your home is probably just a little over priced (maybe 3-5%). You can try a combination of reducing the price and offering an incentive which can pique interest.”
Pricing is one of the first common mistakes home sellers make. An MSNBC Real Estate article refers to “Pricing for yesteryear.” It continues, “Many sellers are tempted to list their home for sale based on what they paid for the home, not on their area’s current market conditions….Arm yourself with information on comparable home sales, price reductions in your area, and find out how long homes are typically on the market. Then you can have an informed discussion with your agent about the appropriate price for your home, given local market conditions.”
A successful sale takes a willing buyer and a willing seller.