Price is a big deal to home buyers and price can also be a big deal to you. However, although you want your home to sell at the greatest price it can, sometimes the price is still too high to attract buyers. Here are a few reasons that people consider reducing the listing price of their home when they are trying to sell it on the market.
It Was Overpriced To Start With
If you overprice your home it will hurt you right from the start of the process. With the rise of the internet it is very easy for buyers to compare homes that are similar to one another as easy as checking pricing on Wal-Mart.com. You want a high price so you get a larger profit but rest assured buyers are not going to be fooled just because you want it to be so.
Buyer Traffic Results In Few Offers.
This could be two possible problems rolled into one. Maybe you have listed your home and you have not had any showings or anyone that was even remotely interested in buying it. This might be because you have overpriced your home and need to reevaluate your asking price.
The second problem could be that you have loads of buyers that walk through your home for a showing. However, you have received very few offers or no offers at all. This means that the home is attractive enough to warrant a buyer’s attention. However, it is lacking something among the competition.
You Can’t Afford Repairs
The cost of selling a house can be expensive indeed if your home just doesn’t stack up to the competition. For example, your home may need a new roof or need new carpeting. Your home may be the only one on the block without a garage or all comparable homes in the area have upgraded kitchens but you do not. In such cases, home sellers will have to provide the money up front in order to compete with the competition at the same listing price. If you cannot financially afford such changes or you do not have the time to make them, then you lowering your listing price can be one of the best ways to entice buyers.
Your Days On Market Is High
For many home sellers, they are working with a deadline. Perhaps, it’s a new job or a new lifestyle, but regardless, it is extremely difficult to move on with your life if you cannot actually move from your home. If you are in a time crunch, lowering the price can allow you to sell your home quickly. This can also hold true for homes that have sat on the market longer than usual. In either case, be sure you check the current market trends so that you can make an informed decision about the price adjustments. It is far better to slash the price and have the home sold, than lower the price incrementally as the sale does not improve.
As you can see, lowering the sale price can stem from a variety of reasons from a longer market time to a lack of repairs. Each problem ends the same though; the buyer decides to pass up on your house. Lowering the price can be an extremely efficient way to attract offers on your home and is easier to market than giving credits or other negotiation tactics on the home in lieu of adjusting the price. Of course, lowering the price means less money to you, but ultimately the right price can mean more buyers, more offers, and a faster closing time.