Every homeowner must set an asking price when listing their home on the market, but what happens when you don't receive any offers?Â Just as it's important to know when it's time to sell, it's important to recognize the right time to reduce the price.
Supply & Demand
If a lot of homes are currently listed on the market or your home is overpriced, it may be time to consider a price reduction if you hope to stay competitive.Â If five different stores sold your favorite soda, what would motivate you to buy from one over the others?Â If you are like most, the cost would be a leading factor.Â The same is true with home buyers, who are looking to get the best value for their dollar.
Market Value Fluctuations
We all know how the market fluctuates.Â If you own real estate, property values can go up one year and fall the next.Â If your house is currently listed and the property values have fallen, you may want to consider reducing the price in order to remain in the running with potential home buyers.Â If your house is priced far above market value, most lenders would refuse to approve a loan for your asking price.Â Having an appraisal would be one way to know how much your home is worth.
If you've hired a REALTORÂ®, you obviously trust him/her to guide you through the process of selling your home.Â If your REALTORÂ® suggests a price reduction, it may be in your best interest to consider it.Â Nobody knows the business like a real estate agent.Â They know what buyers want and, in most cases, what they are willing to pay.Â If you've trusted a REALTORÂ® enough to hire them, trust them enough to value their opinion. Â
Spiro Vrouhas is a trusted real estate agent with years of experience. When you are looking to buy or sell, contact Spiro Vrouhas for your no obligation consultation.
SpiroÂ Vrouhas on Twitter: @spirovrouhas