While you’d like to get the best price for your home, consider our six reasons to reduce your home price.
These six signs may be telling you it’s time to lower the price on your home.
1. You’re drawing few lookers
Around Sun Valley, as in most markets, you will get the most interest in your home right after you put it on the market. Why? Because buyers want to catch a great new home before anybody else takes it. Chances are, if your real estate agent reports there have been fewer buyers calling about and asking to tour your home compared to other homes in your area, that may be a sign that active buyers may think it’s overpriced. They most likely are waiting for the price to fall before viewing it.
2. You’re drawing lots of lookers but have no offers
If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other local agents telling your agent about your home? What is this feedback telling you? An over priced may be discouraging buyers from making an offer.
3. Your home’s been on the market longer than similar homes
Be sure to ask your real estate agent about the average number of days it takes to sell a home in your market. In Hailey, Ketchum and Sun Valley, If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. The average number of days on the market is a strong indicator of where you are priced. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.
4. You have a deadline
If there is a particular reason you have got to sell soon, say due to a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend. It’s all about TODAY’S market value, not three years ago.
5. You can’t make upgrades
Maybe money is tight and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept and realize that buyers expect to pay less for a home that doesn’t show as well as others on the market.
6. The competition has changed
If weeks go by with no offers, it’s important that you keep you eye on the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.
These ideas are all pretty basic advice and common sense concepts that ring true in our Sun Valley resort market, too. Unfortunately its sometimes difficult to see “the forest for the trees” when it’s your home that you are talking about. Hopefully, that’s where we can help.