When is it time to drop the price of your home?
It’s important to first note that the most activity you’re going to see on your home is in the first 30 days of listing it. This means, pricing it right the first time is your best shot at selling quickly. When I do a neighborhood analysis, I check half a dozen sources and go from there. But if you’re reading this, you’ve already jumped off the cliff, so here’s your parachute.
If you’re considering lowering your price, ask yourself a few questions. How many showings have I had? How long have I been on the market? What’s the average days on market in my neighborhood?
How many showings have you had compared to how long you’ve been on the market can be all-telling. If you’ve had less than two showings a week, for more than two weeks, there’s a good chance it’s time to act – quickly. Because remember, you still have two more weeks before the market considers your home ‘stale’.
The average days on market for your neighborhood are equally important. I stress, your neighborhood. Not your city, not your state, but where you live. Usually within a half mile of your home is a good radius. There are parts of Hawaii that I know will sell in the first two weeks and there are parts that I know, without fail, will take 45-60 days. If you live in the latter, you likely don’t have a price problem and just need to be patient.
Lastly, listen to the feedback of strangers who have viewed your home. Your mother or best friend is always going to be kind. A stranger who toured your home and decided not to make an offer is one of the only opinions you should listen to. If they say it smells like dog, it smells like dog. If the majority of the feedback says you’re priced too high, likely, you are.
So, now you’re asking yourself – how much do I drop the price?
