A lady asked me this the other day during a conversation about the current market in Jackson NJ. She has had her home on the market for a little over a month with minimal traffic despite a price reduction. Her agent has advised another reduction in asking price but she was not sure she wanted to reduce again.
Should you reduce again?
When you sat with your Realtor(R) to list your home, you may remember discussing your Comparitive Market Analysis showing local comparables. Since you listed your home, the comparables may have changed, and in today's unpredictable market they may well refelct a much different picture.
It is essential to perform and review fresh CMA's every 45 days at most, even if that means facing some gruelling facts with your REALTOR. Once your REALTOR has illustrated and highlighted the data for you, the chances of selling your home lie solely with you.
For instance, the data may advise you drop another $15,000 to stay in the game but after lengthy debating with your agent, you reluctantly go with reducing $5,000 and seeing what happens, after all a reduction must attract more buyers than where you are now, plus you feel better for holding on to those extra dollars. right?
Here is the most likely scenario if you ignore the CMA Data
Your competitors have already taken the advice from their REALTORS and are currently priced $10,000 less than you. This may place them in a different price bracket causing your listing to be regarded as "OVERPRICED". Not a great label.
Ignoring the data is likely to hurt finances in other ways long term. The funds you thought you saved will be consumed by mortgage, property tax and utility costs while your home is on the market.
From a marketing point of view, your competitors will out rank you in search results because buyers usually choose to list from low to high. Lowest priced homes will appear above yours putting your listing view at risk. Don't assume that just because your home appears online it will get viewed. A browsing buyer may stop at the homes above you and never get down the page, or in some cases, to the next page.
Other Real Estate agents could use your home as a comparitive to push another listing
If you are overpriced you may get the "Wrong Showings". This involves agents showing your home to make a point of why the home down the street is a better deal. Your neighbor will proudly add an Under Contract
rider to his yard sign leaving you stumoed as to Why they didn't choose your home.
PROCEED WITH CAUTION...
Remaining high on the market could place a transaction in jeoprady. You may one day find a buyer willing to give your asking price once your competition have left you in the dust. Everything will sail through - CCO, Home Inspection etc. until the buyer's lender sends their appraisal.
Appraisals have recently become more restrictiveÂ Read More
View Jackson NJ listings from $400,000