In the Butler area that price range is usually selling for between $5,000 and $10,000 less than last year. If you want to get it sold, then dropping the price even by $5,000 gives your agent the opportunity to bring in more traffic. After all, the Realtor cold of ethics states that we may not show a property to anyone who does not qualify to buy it! Lowering the price can bring in more buyers for that reason.

This is a very common question.
So, let's use an analogy. When you want to buy a dress for $100 do you go to a high-end store for a "bargain", to a low-end/clearance type store for a "designer label at a low price" or to a store that carries dress for $100? Are you more likely to buy that dress on sale or at retail? Unless you have unlimited funds, you will go buy the dress at the store with the best price and best quality.

Now let's think about it as it applies to cars...are you more likely to look at a car that is "over your price, at your price range or under your price range"? When you decide how much you want to spend do you go into a high end dealer and offer a very low price or do you offer a reasonable price? For most of us, we have already been on the internet checking to see what the "wholesale" price is for that car and we go in to the dealer and offer a price below that number, knowing that there is no way that the dealer is going to accept our offer. Meanwhile, usually that car has a "sticker price, a best deal of the day price, and a dealer price" . The point is, our homes are like cars or dresses: they need to look like a designer showcase, in mint condition, and priced competitively.

In today's market and with so much information out there, buyers have already "looked" at your home on the internet long before they ever contact an agent. Price, condition, and location all come together and determine whether a buyer will contact an agent to see your home. If your price is not competitive in the market, the buyer is not going to waste their time coming to see your home if they feel you are priced above the market. All a "low-ball" offer is: the buyer asking you a question as to how negotiable you are. A qualified, interested buyer, will negotiate to a fair price, even if they start low. Do not sit it out, time is not on your side. The longer a house is on the market the more it hurts you in price.

If your agent recommends bringing the price down, then I would do it. At the same time, be prepared to be on the market up to 120 days, four weeks is really not that long on the market.

Deborah Levy,
Howard Hanna Real Estate
Cranberry Twp, PA 16066

This isn't an easy question to answer: there are my facets to a price reduction. Here are some things to consider before agreeing to price.

(1) What is the average days on market for your neighborhood?
(2) How many showings have u had?
(3) What is the current feedback from (a) potential buyers and (b) other agents?
(4) Consider that this is the cyclical downswing of the real estate season
(5) What is your motiviation (if u need to go quickly or can u wait it out)

Once weighing the response to all those questions, you, the seller have the final decision.

Frances "Francesca" Patrizio, Weichert Realtor
NJAR Circle of Excellence 2006
Weichert Million Dollar Sales Club 2006
Weichert Million Dollar Marketed Club 2006
Weichert Brielle OVERALL Top Producer 2006
732.606.2931 (Direct)
732.223.2322 Ext. 305 (Office)

Are there any improvements, based on the feedback from buyers, that you could perform for under $10k?

Diane
Since your home hit the market four weeks ago, how many homes have sold? Like yours?
So homes are selling, aren't they? Why not yours?

Buyers always buy the best values FIRST, leaving the rest of the listings to sit. If 90% of the time an Agent shows the buyer the home they buy, you need to make sure that the Realtors think you home has value.

My expectation is 10 showings or two offer in two to three weeks, or we make a 5% price reduction. That doesn't mean we get 5% lower offers, it means we attract buyers. Studies consistently show homes that sell in the first 90 days sell closest to list price.

Diane, you can continue to wait for someone to make an offer, but the longer you wait, the less you can expect the offer to be. A house priced right will get solid offers; an overpriced house will draw "lowballs" or no offers at all. Obviously there is a pricing issue here. Houses that are ready for the market, priced right and marketed well sell quickly even in slow markets. There are only 3 factors in getting a home sold: Condition, Pricing, and Marketing. If your house is in tip-top condition, and your agent is exposing the property to the market, that leaves price as the only variable. Bottom line: do you want to sell? Or do you want to stay?

Diane,

If your agent is providing you with comparable sales that show your house being overpriced, then you need to listen to the market and lower the price.

While 4 weeks without a showing for where you are located is not completely unheard of, it is definitely a sign that you are not reaching any buyers for your home.

I've had sellers that feel the same as you, in that "someone can still offer a lower price . . ". Most of my buyers reply to that statement with "we'll keep looking until we find someone more serious about selling".

Your realtor has more experience than you do, Diane. Sellers have all kinds of "strategies" to price their home, realtors deal in reality.

It either comes down to price, product (your ome) or pitch (marketing.) If it'
s being properly marketed, then unfortunately, it's overpriced. Take the advice of your Realtor.

Sellers rarely like to lower the price of their home. I always like my clients know how the price of their home compares to their competition, those currently on the market . You always want to be below your competition. Usually the lowest priced of like homes sell first. You need to know where your home ranks with your competition. Your Realtor can show you that. Price your home below the your competition.

Listen to the advice of the professional.

I would tend to agree with your Realtor. If your house shows well and has not had any activity in a 2 week period, then you need to look at the price.
What is your motivation for wanting to sell? Are you going to be buying another home? If so, price your home at what you would take if someone made you an offer today. You willl make it up on the buying side.

It is your realtors job to market your home, give you the best advice possible and then follow your directions. He can not magically make buyers appear. If the comparable sales in your neighborhood indicate that your house is priced too high, you need to lower the price. Lowering it will not increase the likelihood of a "lowball" offer. Those can happen no matter where you price your house, but by having it overpriced ( if you do), you are missing serious buyers who may be interested in putting in an offer.