A home must be priced appropriately to sell. Easier said than done. Several factors, from seller motivation to a rapidly fluctuating market, can make it difficult to set the right initial asking price. So how do you know when it’s time to lower the listing price? If you’re running into any of the following scenarios, get set for a tough conversation with your seller: It’s time to lower the listing price.
No private showings.
Your listing just hit the market, and you can’t wait to fill your schedule with private showings. But no one calls.
Assuming you’ve priced your home appropriately, every new listing should warrant at least a few private showings. If you haven’t scheduled a single showing for a property, it could be out of its price range.
Maybe you’ve scheduled a showing or two. But after a few weeks, you’re still lacking an offer. Multiple showings with zero offers could be a sign that your listing is overpriced.
Head back to the MLS with an eye on similarly-priced listings. Make a list of how your listing compares. If your home falls short of other homes in that price range, it’s time to talk to the sellers about a price reduction.
Agents are telling you the price is too high.
Agents love to share their opinions. While that advice sometimes comes uninvited, agent feedback is a good way to tell if your pricing is on track.
Host a broker’s open house. Talk to your co-workers about your list price. Get a wide range of opinions from your fellow experts, and act accordingly.
You’ve been on the market longer than average.
Some homes remain on the market longer than others. It’s possible that your listing’s characteristics will only fit a certain type of buyer, or that it’s simply a slow time of year.
Or maybe your home is simply overpriced. Compare your listing with the average days-on-market for your area. Try to adjust for extenuating factors, and determine if the price is keeping that “for sale” sign in the yard.
You’ve tried everything else.
Have your sellers renovated the kitchen as recommended? Did they update the landscaping, build a new deck, and hire professional stagers, but the home is still on the market?
If you and your sellers have tried every other possibility, look again to the price. Price is typically the biggest determinant for potential home buyers, and must be appropriate for a sale to occur.
How do you talk to a seller about a lower listing price?
Have tips on handling the dreaded “price reduction talk” with sellers? What evidence do you show your clients during this discussion? What should agents avoid?