Profile picture for NightFoxx

When to lower your price

How soon after listing should you consider lowering your price if you haven't received any offers close to your asking price?  30 days? 60 days??  less/more?

I ask because we received an offer within 1 wk of listing our house.  But it was well below the listed amount & they refused to negotiate.
  • June 19 2009 - US
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Answers (6)

Profile picture for NightFoxx
thanks for the help everyone..

What about the buyer's feedback.. should we require that for all showings?
  • June 23 2009
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Dont jump into lowering the asking price for your home. In this market these days buyers will try to lower the purchase price as much as they can, it is a buyers market.
Talk to your real estate agent and he/she will probably know everything Im talking about here.
First make sure to price it well with todays market, dont price it too high because you think you will get it, you wont get what you want.
If within the first month there is no movements and no offers then lower it a little bit until you will see some resaults that will make you sell the home fast.
If your real estate agent is good he will save you all this time and will make sure the price will be right from the begining.

Good Luck
http://www.homesinsale.com
  • June 22 2009
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Profile picture for NightFoxx
  Sorry for the lack of details guys. I'll try to answer everyone's questions.We put our house on the market June 4th & there's only been 3-4 days where we didnt' having a showing.  My best guess is we've shown the house may 12-15x??  My realtor said our price is in line w/the other comps in the area, and so far the limited feedback we've received has been good.  In fact, our house was voted "House of the Week" by our local sales office. Our realtor says, and my research confirms this, there are a lot of other 3/2/2 homes in the area at our price.

Are we getting nibbles, if you mean offers... only one so far, but the house is showing at a steady rate. 

It sounds like if we don't get any more serious offers, or any offer for that matter within the next 2wks something's up.  That said, should we insist on buyer feedback on all showings?  Will that rub some people the wrong way?  Whatever is up, I'd like to know sooner than later.
  • June 22 2009
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Profile picture for Mr Caveat
if you are getting nibbles then i would give it time, if on the other hand you arent, more decisive moves should be taken
  • June 20 2009
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You don't say whether your house is being shown regularly.  Are there houses similar to yours for sale?  Are they being shown (and some are selling) and yours is not?  If so, follow David's advice. 

On the other hand, if your house is being shown but you are getting no offers, a large component of the problem may be condition and/or presentation.  If there are things that need fixing, fix them.  Contact a local stager and ask them to take a look at your house and yard - there may be ways to improve  your merchandising.  Take a look at "the science and art of staging" on my website, anorderleehome.com, I offer lots of information about improving your presentation.
  • June 20 2009
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Nightfoxx,

In general, we tell our clients when we list a property that if we do not see any activity and feedback from agents within 30 days, it is time to consider a price reduction.  This does not necessarily mean an offer must come in.  But we must at least get some activity, such as phone calls from agents and interested buyers which result in showings and positive feedback.  If you've done one or two open houses and nobody shows up, or people show up and don't call back, something is amiss.

That's why we always tell sellers to set the price right (based upon all the comps out there) so that we can avoid this problem.  The first 30 days are critical, and if a home is priced according to market value and attracts many showings and buyer interest, that's the way it should be.  Homes tend to sell at a higher price if there is interest when the listing is new, not when it's been lingering on the market for months.  Then, it becomes stale.

If you are not satisfied with an offer that came in after one week, and it was much lower than your listed price you should not feel pressured to accept it.  However, if that trend continues it may mean your home is priced too high above market value.  If you have not consulted with a Realtor already, our suggestion would be to do so, and to find someone who will do a comprehensive market analysis and show you similar homes that have closed, listings that have expired, and current active listings as well as similar homes that are currently in contract. 
 
Also, check the price trends in your neighborhood to get an idea of where your local market stands and if there is a downward or upward trajectory for the next year.  That also could affect the offers you receive.

Hope this is helpful...

Good luck!

Bonnie & David
  • June 19 2009
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