It’s not what any seller wants to consider: Lowering your Windsor house listing price. But if your property is not selling, it could be for reasons that you simply can’t control. Maybe you live on a busy street, or have a home without a garage. Perhaps the layout of your home is too boxy. Yet, what you can control is the price of your home.
The key to remember is that your home is worth what a buyer will pay for it. It’s not worth what YOU think it is, but what the market says it is. While this isn’t the best news for sellers, sometimes lowering a price can be a money saver. If you sell your home at a lower price, then you are moving all the sooner and this is welcome news if you already purchased another home, or are relocating for another job or downsizing.
So when should you consider lowering your asking price?
1. Not enough lookers
Once your home goes on the market is when you get the most people looking at your home. Buyers want to see it before anyone else takes it. However, if you have too few buyers in those first critical weeks, it may be a sign that agents and buyers think your home is overpriced.
2. You have plenty of lookers but no offers
If you are booking lots of appointments for your home, but you come away without an offer, then something is not quite right. What are other agents telling your agents? What are you hearing from the feedback after each viewing?
3. Your home has been on the market longer than other similar houses
If you priced your house higher than what the comps dictated, you may feel you have very good reasons. Perhaps your kitchen was recently remodeled or you recently added on a large family room. But for some buyers, the higher price tag doesn’t work, despite the home improvements. If you have overbuilt, buyers don’t want the most expensive house in the neighbourhood. Ask your agent what the normal number of days a home in your price range will stay in the market. If the answer is 60 days, and you are coming up to three months, then it may be time to consider lowering your asking price.
If you need to sell quickly, either you are suffering from financial problems or you bought another home, then dropping your price can create buyer interest. And it’s not unheard of that if you lower the price, even 5 percent under the comp, you can very well entertain a bidding war. Buyers like to hear from their agent that a great home at an even better price is available and they often act quickly.
5. Upgrading the home is costly
If you are hearing from your agent that at your price point, buyers want a home that is more move in ready, or recently remodeled, but you simply don’t have the cash, it’s time to accept that buyers will pay less for your home. This is true when homes priced similarly yet are better appointed are selling and yours is not. In other words, if your house doesn’t show as well as others and they are priced the same, chances are you need to lower the price.
Check out your competition if weeks go by and you still have not received any offers. Have the comps changed? What’s still on the market? What new listings have been added? You may need to lower your price if new listings and comparable home sales prove that your price is too high.
Again, it’s never fun to lower the price of your home. It’s the talk no agent wants to have with their client, but once again, a seller needs to think how long they can afford to stay in a home they no longer want to own. If you are making hefty mortgage payments on your current home, if you have found another property that you want or maybe you are moving out of the area, sometimes it’s best to drop the price and relieve your stress level. No one wants to make two mortgages, nor does anyone want to stay in a house when they are ready to move elsewhere.
Talk with your agent about what price you will consider to get it sold. The longer a house stays on the market, the more suspicious buyers become. They will think something is wrong with the property and be hesitant to even look at a home that has a reputation for being overpriced.