5 Tell-Tale Signs You Need to Lower Your Selling Price
As a seller, your goal is to get top dollar for your home. Who wouldn’t? So you set the selling price at a rate that is suitable for you and your family with a few percentage set for profit.
Now you wait for offers.
What does it mean when, after a couple of months, the only offers you get are mostly low-ball rates?
There are many factors that come into play. But it is highly likely that your selling price is too high.
There are plenty of indications that you may need to lower the price you set for your property. You just need to find out what they are.
Signs Your Selling Price Is Too High
High traffic but no offers
Yes, you’re not getting any offers for your home and that’s obviously a clear sign that no one’s interested, right? Not exactly. You should definitely dig deeper when you get high traffic during open houses and private showings and you have yet to receive an offer. High traffic indicates that people find your property appealing but the asking price is simply too high.
There are also cases when there are no scheduled showings because local brokers think the property is overpriced and are not showing it to their clients. Real estate agents suggest that you should reduce the selling price if a month has passed without a scheduled showing.
Comparable homes are cheaper
It is textbook practice for any seller and real estate agent to compare prices with other homes in the area that are being sold. Do take the time to check what the average price is in your area and determine if your property’s price falls within the same range. Check properties in the vicinity that are sporting new home designs as well. If your home is priced much higher than neighboring properties, you’re likely to be scaring off buyers.
Visit real estate listings online to determine prices of comparable homes in your area. Make sure to use specific criteria when making comparisons, such as approximate square footage and the number of bedrooms and bathrooms.
You should also visit open houses to get a feel of what you could do better in your own public or private showing. Follow the progress of each sale until a property is sold.
Multiple low ball offers
In a buyer’s market where inventory is high, one or two low ball offers should be expected. If this is not the case with your property, however, and all you ever get is one low ball offer after another, you should re-assess your property price.
It is possible that the offer you receive seems pretty low than what you expect but is actually within an acceptable range. You should adjust your selling price accordingly to make it more competitive.
New construction rivals
When you’re selling your home, you not only need to keep an eye out for other houses in your neighborhood but also new construction options. If they are within your price, competing can be a real challenge.
New construction of apartments and condominiums are often a buyer’s first choice as they are brand new, which makes them tough to compete with. Furthermore, brand new properties are often offered with incentives to potential buyers.
If there are new constructions in the area, you should lower your asking price.
Priced for unique amenities with no broad appeal
Did you price your home because of the indoor badminton court or platinum faucets in the kitchen and bathroom? Regardless of how fond you and your family are about those unique amenities, not everyone may share your opinion. Other buyers couldn’t care less about those platinum faucets.
More often than not, the more customized the home is the less likely a seller will see their value in sales price. This is why experts recommend to renovate wisely and to keep unique amenities to a minimum unless you see yourself living in the same house for the next 10 to 20 years.
Overall, there are different factors that can keep your property on the market for multiple months with or without offers. But if one or all five of these signs are evident in your own situation, you should reduce your selling price. There’s no point in sticking to the price you set if you don’t get any offers.