There are several reasons why you should lower your asking price on a property including if it’s been on the market for several months, is not getting any interest or if it needs a lot of work. Needing work is one of the biggest reasons to lower prices as construction can be difficult for a new homeowner, not to mention they may not be able to borrow the money needed because they are too leveraged on the property.
If your property needs $20,000 of work or more, that can keep buyers away. Even if you are willing to lower your price by that much, it still may not be enough. Keep in mind, the buyer may not even be the one requesting or demanding the changes. Their insurance provider may want a new roof or updated windows, which puts the buyer in a tough spot.
How Long Has Your House Been On The Market?
The first thing any realtor will ask you if you are considering lowering your asking price is how long it has been on the market. Usually, if it’s been one to three months, they will recommend you keep the prices where they are at. However, if it’s been over four months, a price change may be needed.
Do You Have Any Interest?
Are you getting any calls? Is anyone making a serious offer or are you getting no interest or just low-ball offers from investors? If you are getting serious interest but buyers are struggling to meet your demands, you may want to hold on. Buyers have a tougher time right now because of higher home prices and interest rates. It could take them some time to meet your demands as well as those of the lender.
Remember, you need one serious buyer on the hook. You do not need ten and if you want to get your initial asking price, you may need to wait and be patient. Great deals do not happen overnight and it may require you to work with someone who wants things done to the house or for you to lower the price a little.
How Much Longer Can You Wait?
How long can you actually own the property? If you can wait six months, then hold for three before lowering the price. If you need to unload it fast, the price needs to come down fast. You will dictate whether or not you drop your price as much as any buyer will because it depends on whether you want to unload the property more or get your asking price more.
Are You Asking For Fair Market Value?
Another question that needs to be asked is if you are asking too much. Is your property really worth what you are asking for? Look at the neighborhood you are in to draw comparisons. If you own a 3/2 with an acre of land and want to sell it for $700,000, then you have to see if similar properties are selling for similar prices. If not, and they are selling for $550,000, then you need to reevaluate things.
What does your realtor recommend? They helped you determine an asking price, they talked with every interested party, held open houses and more. They can tell you when the right time is to drop the price and if it’s the right time. Another thing local realtors can also help with is determining seasons. Maybe homes in your area sell better in March than they do in January. If that’s the case and you listed three months ago, maybe you need to hold a little bit longer.
