As a seller, how can you make a price reduction that counts?
Right now, our market is changing—homes are taking longer to sell, and we are seeing a lot more sellers making price reductions. In fact, last month I made my first price reduction on a home in six years.
Because the market is shifting, you need to shift your mindset along with it. If you’ve listed your home and it has sat on the market for two or three weeks without an offer, it is time to consider a price reduction. I want to help you make the right price adjustment so that when you do, your home sells right away. What you don’t want to do is chase the market down, which is what a lot of sellers are doing.
For example, if you list your home at $950,000 and it doesn’t sell after three or four weeks, don’t drop the price down to just $949,000. A $1,000 price reduction in a million-dollar price range won’t inspire any buyers to say “Wow! Now I have got to see this home. That’s the price I’ve been looking for.”
Instead, you should reduce your home’s price by 3% to 5%, depending on how much activity it has already generated. If you price your home at $989,000 and it has only gotten a few showings after two or three weeks, you’re better off dropping the price down into the neighborhood of $949,000.
A price reduction should be enough to inspire buyers and ensure that you still squeeze as much money as possible out of your sale. If you do it correctly, you should be able to attract multiple offers for your home and sell it for more than the price you originally reduced it to.
If you are getting ready to put your home on the market or would like to know what your home is worth, please feel free to reach give me a call or send me an email. I would love to speak with you.
Until then, happy selling!