Profile picture for user291036

When is it a good time to drop the price of your home

I have a Realtor who keeps insisting that I drop the price of my home which is for sale. My home has been on the market for about a month.  I'm not in a distressed situation.  When is it time to drop the price and by how much?  I live in the View Park area of LA, which is a nice neighborhood.
  • October 19 2013 - Los Angeles
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (18)

After 9 days on the market and no showings or offers..... Typically a price problem. Adjust accordingly. Don't wait to drop price. You'll end up staying on the market and dropping more and more.
  • December 07 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

30/10/1 - If your property is priced right, in 30 days you will have 10 showings and, at least, 1 offer. If you're not generating traffic (at least 10 showings in 30 days) consider revisiting your marketing strategy which may include adjusting the price. Good luck!
  • December 07 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for AlexGandel

The old phrase "time is money" is more true in real estate than most industries.  The longer a home sits on the market, the lower the final selling price relative to start price.  This is true in Simi Valley.  A home priced right relative to location and condition will sell quickly.  Ongoing negotiations might push that sell date out to 3-4 weeks.  However, if there's no activity, no offers (verbal or written), and few or no duplicate showings after the house has been properly marketed by your agent, then it's time to drop the price. 

  • December 07 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Is your house priced competitively? Check the houses for sale with similar features in your area; if your asking price is higher than the average then it is best to lower it down.
  • December 07 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

John Squier's rules of them are actually a pretty good guideline. But more towards the principal if you don't see much activity and your price is not in sync with what the market dictates then adjust.

However, I believe a proactive approach is better. Most agents have tools and help that almost always help them identify the proper "price range", however to appease the client they go with what the client suggest and list for a higher listing price to get the listing. One of the best approaches to take right off the bad is the I have to protect you and do what's best for you and I cannot risk my reputation but listing properties that are way overpriced. As well as if I cannot sit here and negotiate with you and advise you properly, do you think I would be able to push a buyer and agent to get the best deal for you. I'd love to sell your property for more, because I'd make more, however, the market dictates differently.

Some really great comments guys! 
  • December 07 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Ben Sepian
Honestly, had your agent/broker listed the property at the correct list price in a market such as today with low supply and relatively high demand a price drop within 30 days would not be necessary. If you have further questions please feel free to contact me who has priced homes and sold properties for more than 1,800 home owners in my 25 year career including the federal government, institutional as well as private clients such as celebrities, attorneys, doctors, CPAs, and many other professional who chose my services with both local connections to buyers via a grand scale online marketing in addition to international exposure to cash overseas buyers. Please make sure you chose the right agent for the job and stage your home properly to attract the qualified buyers. Best regards! Ben Sepian[contact information deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • December 07 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for aracz
Hi,

It would take intimate knowledge (by your Local agent) for your area to know when it is a good time to lower the price for sure. Some General thoughts could be:

1) It is vital to look at the average days on the market for the comparables you used to price the home
2) The season we are in may have a bearing on the time it takes to sell a property
3) Are there any new comparables that have come on the market or closed since you last looked at comparables
4) Some would consider having an appraisal done and using it to strategically price the property as well as having a second opinion on value
5) Usually price is the great equalizer, and the market will indicate the reaction to a certain price with offers, low offfers, or now offers. If you have open houses or showings, you can also keep track of the traffic.

Kind regards,

Arpad
  • December 07 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for John Squier
There are two rules I typically advise my clients to follow when it comes to pricing strategy. 1) Any two week period with little or no showing activity, and 2) for every 10 showings you have without anything in writing or any serious expressed interest. Following these two rules generally helps ensure that as a seller you are not leaving money on the table and you avoid your listing from becoming stale. Understand, I am in the Minneapolis market, however, I still believe the same principle would apply to many markets. 
  • December 06 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I would look at it from a potential buyer's prospective. If a buyer sees that you haven't dropped the price after a month, then they may make an assumption that you aren't willing to negotiate. Or buyers may have a disposition that there is something wrong with your house because it's been on the market for longer than other homes in the area. Consult your listing agent but it may be a good option to drop the price, get multiple offers (ideally) and have those buyers bid against each other which would ultimately increase the sale price.
  • December 06 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

If your home is not selling in a market with strong buyer activity such as the market we are currently in, then it is overpriced.  Its that simple.  If you want to sell it, lower the price by increments of $25, 50 or 100,000 depending on the value of your home every 30 days until it sells.
  • December 06 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

My opinion is that if, after 2 weeks on the market and you haven't received an offer you need to adjust the price. By how much is determined by your local market. In my market, I use the following recommendations: If you have had 10 showings or less in the first 2 weeks, then a price reduction of 10% is in order.  If you have, and contiue to have showings in excess of 10 per week (without offers), then I recommend 5%-8% price reductions.

The others here have asked the question of how the asking price was determined? Quite often sellers will use the agent that gave them the highest suggested list price rather than the one that gave the most realistic price.  Ask your agent to take you to see homes in your area that are priced slightly above and below your present price.  Look at them with a "buyer's eye". Compare them to yours (again with a buyer's eye) and decide, if you were looking to buy a home, which one would you purchase?

Good luck.
  • October 21 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Dear User,
A month is a long time in this market. We have many buyers out looking so homes that are well priced are going fairly quickly.
I don't know the details of your home and listing so it's not possible to tell  you when to drop the price....or how much.
Price is actually the most important aspect in marketing a home for sale, so hopefully you were in agreement with the Realtor when they gave you a CMA and recommended a price.
  • October 21 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for JamieTian
If your realtor is doing a good job of marketing your property and you are getting showings and no offers, then it is likely the price of the property. 

Typically properties in this market will sell within one month if they are priced correctly. 

Feel free to contact me directly with more questions.

Best,

Jamie Tian
Rodeo Realty
  • October 20 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for CallTheSisters
Who decided the listing price to start with?  You or the Realtor?

I've seen both sellers and Realtors trying to push the market up by listing high.  The theory being we can always go down we can't go up.  By the time you get down to where you should have been the property already has the reputation of being overpriced.

If you want action and offers the price should be just under what the most recent comp sold for when you first listed.

If you need to make price adjustments after a month without showings or offers the price was too high to start with.
  • October 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

IF you are getting tons of showings and no offers than it's probably price. IF you are getting No showings see if she will change somethings about your listing first. Maybe new pics, open house, brokers open, staging, description. Look into those things if you are getting no showings at all. IF you change those things and you are still not getting any showings then you would need to reduce the price. Also have your realtor show you the comps for your home. Does your homes sale price  support the sales of other homes in your area.
  • October 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

When is a good time to lower price, it all depends on how your activity is going. If you price it fair buyers will come. It's best to drive the price up with multiple offers than price it high and hope so one will come. Your home is for sale for a reason and that is to sell. At this stage after a month you should consider to reduce it by 5% below what your market analysis your agent provided. After a month on the market it just states that the market isn't ready for your price and probably consider taking it off the market and wait a little longer and hope the market catch up to your price. Good luck
  • October 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

When I take out buyers, one of the most frequest questions asked is : How long has the home been on the market ? If I tell them more than 3 weeks my clients automatically assume that there is a problem with the home, either its overpriced,not in good condition or has a location issue. The longer your home sits on the market the more stigamtized your home gets. Always price your home at a fair price, its better to have multiple offers to choose from than from none at all!!

  • October 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

In your area houses are sold within 1st week on the market! If your house on the market for a month and no offers... It means your property is over priced! The sooner you price your house correctly (market value) the sooner you sell it!
  • October 19 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.