As a homeowner who is selling your property, you probably set an asking price that is ideal for you and your family. It’s great if you start getting offers straight off the bat, but what does it mean when you don’t? If your home has been sitting on the market for a while now, you could be thinking about reducing the price. There is, however, that thought lingering in your mind that maybe you are robbing yourself of thousands of dollars if you do.
So how do you know if it is the right time to lower your asking price? While every market is different, here are five tell-tale signs that you need to lessen the price, otherwise you will miss out on eager buyers.
1) 30 Days without Offers
The first sign that will tell you to reconsider your asking price is if 30
days have gone by without a single offer. At this point, you may have had a few
showing activities already. You could get feedback from some of the people who
have seen your home to get an idea of a price they are willing to agree with.
Feedback will also tell you if you’re doing something wrong with the way you
advertise your home.
2) Loads of Competition in Your Neighborhood
The second sign is if there are lots of other properties that have come out in the market that are priced lower than yours. As you may well imagine, potential buyers would much rather choose houses in your neighborhood that are cheaper than yours. This is why you should continually monitor the market activity around your local area and adjust to changes.
For example, you should research the average time that a property stays in the market in your neighborhood. If your home has not reached that point, then hold off on lowering your price for a while. If you are past that point, then it’s time to change your asking price.
You should also check if homes in your neighborhood have had a price reduction. If there have been reductions, find out what the average price cut is. That should help you set a more accurate price for your home.
3) You Have New Construction Rivals
Just as you should keep an eye out for other houses in your neighborhood, you should also see if there are new construction options in your area that are priced within your range. New construction options like apartments and condominiums are tough to compete with, because these are brand new and usually offer incentives to potential buyers.
4) You Have a Deadline
Like any other homeowner selling a property, you probably have a realistic deadline to meet. So if you’ve got to sell soon because of a job transfer or you’ve already purchased another house, you really need to generate buyer interest by lowering your asking price. Remember that it’s not how much money you need that determines the asking price, it’s how much buyers are willing to spend.
5) You Can’t Repair, Remodel, or Upgrade
If you are all out of cash and don’t have the funds to repair the floors, paint the walls, or update the old kitchen, then you have much lower chances of getting offers, especially if there are similarly priced homes in your area that are completely refurbished. So if your home has been on the market longer than other properties in better condition, it’s time to accept that buyers expect to pay less for your home.
With the help of these tell-tale signs, you will know if it is the right time to lower your asking price. If you are dealing with loads of competition and you can’t afford to renovate your home, consider selling your property to Blue Hen Homebuyers. Contact us today at 910-802-2222 for an offer!