When to Lower the Price of Your House

Every home seller expects their house to sell quickly, especially if you live in a fast-moving real estate market. But what do you do if those offers don’t start rolling in as quickly as you expect — or at all?

Pricing your home to sell is a bit of an art form, which is why many sellers end up adjusting their list price within a few weeks. Nationwide, 25% of homes listed for sale had experienced a price cut in September 2024 — the start of the slower Fall season, according to Zillow® economic data. About half of sales that month were under list price, while a third sold over list price, the data shows.

If you’re thinking about lowering your asking price, consider this: the longer a home is on the market, the lower your odds are of selling it for list price. The reason: Some homes develop a stigma just by being on the market too long, even if there’s no major issues with the home. It could be that a series of buyers made offers but couldn’t obtain financing, but shoppers wouldn’t necessarily know that. Instead, they see that the house hasn’t sold quickly and assume there’s something wrong with it.

What’s more, if you live in a strong sellers market, Zillow data shows your odds of selling for list price, and quickly, are much higher. 

So is it the right time for you to consider a price adjustment? Consider these factors below.

When to reduce your house price

Nearby comps are priced lower

When you select a list price for your home, you obviously hope to sell for as much as possible, while still being competitive with other listings. Take a second look at other similar homes for sale in your neighborhood. Is it possible you priced your home too high given your current market? Are other similar homes selling more quickly?

You’re not receiving offers

While there are multiple possible reasons why nobody’s biting on your home, price is often the culprit. If you’re in a seller’s market with tight inventory, your new listing is likely to get a lot of attention and/or offers if it’s priced right. For instance, in September 2024, a typical home for sale went from listing to pending in 20 days. If buyers feel like they can find a similar home at a better value, they’re unlikely to put in an offer, or even set up a showing. If people are viewing your listing online but not submitting an offer, or if you’re getting open house attendance with no results, your price could be the problem.

You’re having few showings

Speaking of showings, the foot traffic coming through the door is a great indicator of the attractiveness of your list price. Open house and showing traffic tend to drop off after the first two weeks, so you’ll know pretty quickly if your price isn’t resonating with buyers.

You’re getting showings, but low or no offers

If people are touring your home, and coming with offers slightly below your asking price, it could be a sign that you’re only a little off the mark. If they’re coming in with offers way below asking, it’s likely a sign that your home is desirable, but not competitive with other homes for sale.  

Your home appraised low

Savvy sellers often pay for their own appraisal before they list as a way to get an objective opinion on an appropriate list price. If you haven’t gotten an appraisal already, it might be money well spent.

If the home appraises well below your asking price, then you have your answer. If you’ve had a contract fall through due to a low appraisal from the buyer’s appraiser, that’s another good indicator that a price adjustment might be a good idea.

Your home has been listed more than a month

The longer a home sits on the market, the more likely it is that buyers will assume something is wrong with it. Nationally, homes go from listing to pending in 20 days on average. Some markets are longer and others shorter, but if you’re not getting interest after a month – some agents would say even 10 days — it could be time to adjust. Your agent, who is a local market expert, will know whether the time on market is long for your locale and can look up recent sales of comparable homes. You also can look at the Zillow Home Values Index to see how quickly homes in your zip code sell.  

Buyer feedback is negative

Ask your agent what buyers and other agents are saying during showings and open houses. If buyers are being turned off by the price after seeing it, you may have reason to rethink your price in relation to others on the market.

Marketing steps to take before a price reduction

Before reducing your price, it’s a good idea to step back and make sure the price is really the issue, and it’s not an issue of ineffective marketing.

Load up the photos and videos

Even though your home may be beautiful in person, if your listing has low-quality photos (or worse, none at all), you’ll never get buyers through the door. Professional real estate photos are always worth the money, especially in a competitive market. And consider adding a 3D Home virtual tour and ShowingTime+ to help buyers get a better feel for the home’s layout.

Ensure your online listing is complete

Make sure your listing description is putting your house in its best possible light. Be sure to showcase the home’s best features, share information about what makes the neighborhood special, and pack it full of the keywords buyers love. A local real estate agent should be able to give you insights into the most popular home features in your area.

Make sure your home is listed in multiple places

Whether you’re working with an agent or selling for sale by owner (FSBO), you should make sure that your home is showing up in multiple places, including on your local MLS, on Zillow, on other real estate search sites, and on social media. If you’re using an agent, touch base with them about their online marketing plan for your home.

Post signage in prominent locations

Make sure you have plenty of visible signs around the neighborhood, and give special attention to way-finding signage for open houses.

Address buyer feedback

People who have toured your home but didn’t end up making an offer are a great resource. If you set up these past showings yourself, consider asking for feedback directly. If you’re using an agent, ask your agent to follow up after showings and ask for constructive criticism. Then, take action on any fixable pieces of feedback — and try not to take it personally.

Check your Zestimate

Zillow uses an algorithm to estimate a property’s market value, and publishes that on every home listed on Zillow where relevant information is available. The estimate — which is called a Zestimate — is intended as a starting point for determining a home’s value, and could help you gauge whether your pricing is in the ballpark. The Zestimate takes into account the specifics of a home, market data, including comps, and off-market data such as previous sales and public records. It also incorporates market trends, including seasonal fluctuations and demand. You can fine tune the Zestimate on your home by making sure your home details are correct on the listing, and that photos include any desirable or higher-cost finishes and features.

Price reduction strategies

Act quickly

As we mentioned earlier, the number of showings and open house attendees drops off significantly after the first few weeks your listing is active, so don’t wait to take action. If you’re realizing you need to reduce the price, don’t wait.

Be realistic

When discussing what your new, lower price will be, make sure you’re comfortable with the amount. What’s the lowest you can accept and successfully move on from the sale? It’s not a good price if you’re not realistically able to take the amount. Consider the costs involved and your timeline. Do you need to sell now? Do you think you’d do better waiting for the right buyer, and can you afford to lower the price even more if the right buyer doesn’t come along. If you want to explore different scenarios, try the Home Sale Calculator.

See what other sellers are doing

Use Zillow’s neighborhood-by-neighborhood data to see what other sellers are up to. How long are they waiting to make a price adjustment? How much are they cutting the price? Get clues from recent sales to gauge your timing and discount.

Reduce the price only once

Nobody likes to make a price cut, so sellers are often inclined to make multiple small price adjustments to ease the pain. Avoid this strategy — it can take multiple small reductions before buyers finally take notice, so you’ll only end up prolonging the sales process. Instead, decide on a cut that’s significant enough to jump-start interest in your home. According to Zillow data, the average price cut on a typical home as of September 2024 was 3 percent of the list price.

Tap your agent’s expertise

The good news is that you don’t have to go it alone. An agent can do the heavy lifting for you, researching comps, recommending improvements that will bring a good return on investment, and strategizing on the best time to list to sell for the most money. And when it comes time to set the price, your agent will be able to give you honest feedback on pricing that takes into account your personal situation and goals.