If you are getting no showings...you are too high.
If you are getting showings and no offers, you are too high.
If you are getting offers, but they are consistently the same low price, you are too high.
Are you motivated to sell? If not, take if off the market and wait it out.
If you are motivated to sell, get in front of the market.
If you hang on to a number today, tomorrow's selling price will be lower than today's aggressive price.
I do believe, however, that the property needs to be appropriately and abundantly marketed...it cannot be a secret sale.
Make sure you see comparable sales that are within 3 months of today, within your zip code and school district and preferably, no farther away than one mile. This is what the appraisers will be looking at. If the sale price does not appraise, the deal will fall anyway.
Do not chase the market; be ahead of it.
In this market if your home is priced "better than the othere" buyers will know and you might have competition.
I doubt this will be the case.
Price is the only factor that sells homes in this market.
If you want to get it done, drop the price.
Make your home stand out from everyone else.
If your home is priced right from the beginning then you should be getting steady traffic especially early on in the first two-week or so. At this time you are the new home on the block (so to speak) and coming up when agents are searching for their clients and for buyer who are looking on their own.
In regards to the agents feedbackâ€¦a couple of years ago when the market was fast and furious, it was not uncommon for an agent (myself anyways) to walk into a home and be able to determine it price within a reasonable margin of error; unless you have recently done a market analysis on a similar home the comments from these agents are just their initial opinions and nothing more. If you agent has done his/her work in pricing the home with the best â€œSOLDâ€ comps you should be good.
â€œThe Expertsâ€ are saying we are depreciating at 1%+/- per month so if thatâ€™s the case and you have a $300K home, thatâ€™s $3K per month. Pricing it correctly is â€œVITALâ€! I on many occasions have spent hours digging into detail on home sale to come up with the right price only to have the sellers say OK and then want to add $15K to the price of the home for no other reason than itâ€™s their home. Donâ€™t get caught behind the market, I have personally seen too many homes priced higher than they should be when they come on the market, and by the time they start dropping their price the are dropping to a level that is still above the market price, never catching up to the declining market. That said 4-6 weeks before considering a drop.
You should consider a reading "Freakenomics" by Levit. One example he gives is that in a sampling of 100,000 homes sold in the Chicago area showed that 3,000 homes were owned by the agents who sold them. The best way to compare whether an agent is working for you is to compare what they do for themselves vs. what they do for you. Of the 3,000 agents in Chicago selling their own homesites
1) The agent's home stayed on the market an average of 10 days longer than those of their clients
2) The agent's home sold for an average of 3% more than those of their clients
In the book, Levitt goes into more depth explaining why an agent would sell your home slightly faster for less (if you hold out for $5,000 more dollars for you this means only an extra $89 for the agent)
Personally I am holding out for more and my agent is giving me updated competitive analysis of the homes around me and the prices they sold at as well as how long they were on the market.
While you are waiting to hit a number, the price you might sell it for today, will not be there tomorrow when you finally decide to lower it. If you don't have any offers...it is too high (assuming it is being well marketed).
If you live in a typical neighborhood and your house is being shown regularly each week, I recommend waiting a month before lowering, and even then you might not want to change the price, especially if it is priced competitively. If there had been no showings, that would be a sure sign it's price too high, and I would recommend lowering it after about two weeks. Some areas simply take longer, especially rural areas where homes are on acreage. Your agent should be able to tell you what to expect in your area. As for how much to lower, your agent should be able to guide you; that's why you hired him/her.
Hi Daisy, I would wait a up to 1 month, then make a reduction. I recently wrote an article on how to compel buyers to accept your offer. here is the link: http://estatesla.blogspot.com/2007/10/selling-idea.html
Interesting little article. I find that pricing a home in a range accomplishes the same thing. Not enough agents use value ranges to price their listings.
This is always a tough question to answer without knowing the property or area. You have had a number of good suggestions from the Trulia Voices.
My additional suggestion would be to ask your Real Estate Agent to update you with the competing properties currently on the market in your area (same town if possible). What else is available in your price range? Is the condition and price of your property enough to make it stand out from the rest? In this market, you need to be the most appealing home for the price to attract buyers to come look.
I also agree that photos and tours are essential to buyers searching the internet, so you may want to see if having the tour running results in more showings.
Do you want to sell or do you want to stay? Your professional real estate agent is trying to keep you ahead of the market. The market is what talks to us. Only one showing would indicate to me that there is a problem. I would look at price, location and condition of the property. Which one of these can you or would you change to effect more market activity? If you truly want to sell, you must compete and todays competition is very motivated to achieve the goal of selling their home. Best of luck to you.
I normally suggest dropping the price after 30 days. However you have only had one showing, that's not very good for a new listing. We are coming into the slowest time for real estate (Thanksgiving to January 1st) so you don't have a lot of time to lose. I'd either drop it for the weekend or right after. However a ten percent reduction does seem extreme.
Good luck, Michael