Too many variables go into this before I can give you an answer that will hold true for all sellers. So let me take a shot at this and give you some information to consider.
When you first list your home there are a few things that must be spot on. Photographs, text detailing your home, and the sales price. As they say, you only make a first impression at first. If any of those are not enticing, the potential buyer reading your ad may turn the page and go find another property. Time is now either working for you or against you.
But, for now, we are discussing the initial sales price only. There are two schools of thought. List high and give yourself some negotiating room. Or list low and entice a larger group of potential buyers. In my opinion, neither is exactly correct. If you list too high, you may not get any lookers. If you list too low you may leave money on the table. The current real estate market should play a role in how you come up with your initial sales price. Is it a buyers’ or sellers’ market? In other words, are homes currently selling quickly or are they not. And the market is influenced by the economy, interest rates, and global issues. So hopefully, your real estate agent took all this into consideration when initially pricing your home. Because if the initial sales price is off, then that is the major reason why your home has not sold.
Let’s assume your agent did a fine job and priced your home properly. Let’s assume that the photographs, text detailing your home, and even the advertising are fine and your home has not sold after a few months. Then, however your initial sales price was determined, the market is telling you that your price is currently too high. Because at the end of the day, the CURRENT real estate market will dictate if your price is in line with what folks expect to pay TODAY for your type of property.
Now, as I wrote earlier, if you listed it too high, you have some room to play with the sales price. If you listed it a bit low, then you don’t. More buyers and real estate agents will notice your home when it first hits the market. If it doesn’t sell in a fairly short amount of time, interest wanes. They may move on to consider other homes. Some agents and buyers will save the information on your home to see if the price drops. They like your home, would consider buying it, but for whatever reason they don’t want to pay what you are asking. So, to answer your question,,, yes, it’s time to drop the price. How much you drop it depends on what you have it priced at. The more you drop it, the more interest you will generate. And you might bring buyers into play that could not afford your initial price. So, good luck, and if you have any follow up questions, feel free to email me.
