Our home has been on the market for over one hundred days. Since we want to retire and relocate this year, we have to decide to lower the listing

Asked by Cat2010, Harrisburg, PA Tue Jun 14, 2011

price by 25 %. Do you think this too low? what would be the result of this action?

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11
Gwen Janicki, Agent, Bryn Mawr, PA
Wed Sep 28, 2011
It's been more than 3 months since you posted and I think we are all interested to know the outcome. Did you reduce your price and if so how much? Did you step up your marketing? Did you get the house sold and how much longer did it take? Hope you have good news for us and information that other Sellers in your situation can learn from.

Gwen Janicki
0 votes
Christopher…, Agent, Tarrytown, NY
Wed Sep 28, 2011
Hi, I would look at whatever has sold (the last six months) and what is active in your immediate area to make a proper price reduction. The key is to make your home the best value and price at the same time. So if you have a competing home that is listed at the same price make sure yours is in great shape, clean, and priced about 10k less. Pricing isn't always the issue, marketing also plays a big part. You may undercut yourself and all you needed was more exposure. If you are selling on your own you should really get some help marketing the property online and possibly in print. It doesn't matter how low you go, if the right people don't know about your home it's not going to sell.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
Web Reference:  http://raveis.com/chrispagli
0 votes
Gita Bantwal, Agent, Jamison, PA
Wed Sep 28, 2011
It depends on whether your home was priced high to start out with. Ask your agents to give you comps and find out what your competition is and whether any homes have sold recently. If homes are selling at your list price , then there is a chance that if you reduce 25% you may get multiple offers. But it depends on the market. Buyers are not buying because of the economy and fear of losing their job. Another factor to consider is whether your home is for first time buyers or move up buyers. There may be move up buyers interested in the house but can not make an offer if they have a house to sell.
Web Reference:  http://www.gitabantwal.com
0 votes
Erica Ramus,…, Agent, Pottsville, PA
Sun Sep 25, 2011
You need to have a good sit down discussion with your agent. In this market it is all about price, so any price reduction in a listing agent's eyes is good.
0 votes
Nikhil Gokla…, Agent, Harrisburg, PA
Sat Sep 24, 2011
When was the last time your agent met with you to go over prices of comparable houses in the area where your home is located? I would recommend you do so and work as a team to set a price that will attract buyers without selling yourself short.
0 votes
Gwen Janicki, Agent, Bryn Mawr, PA
Tue Jun 14, 2011
I would hope that your listing agent has been talking to you about lowering your listing price long before now.
The market is telling you that they are not prepared to pay what you are asking for your home. Lowering it by 25% all at once could represent a huge drop depending on your price range. Several things could happen: it could spark a lot of interest if this new price makes your home the best value in your market area. It could also trigger multiple offers or a bidding war. Wouldn't that be great! However, on the negative side, it could send a signal that you are very motivated, perhaps too motivated, so I would be prepared for offers much lower than your price drop. I would take it a little slower, but I wouldn't delay the first price change any longer.

Best of luck to you!
Gwen Janicki
0 votes
Christopher…, Agent, Tarrytown, NY
Tue Jun 14, 2011
Hi, It depends on what the current values are in your area. It could spark a ton of interest if it is easily the best value in the neighborhood. It could also spark multiple offers resulting in a bidding war, which could work very well in your favor. It will also tell the market that you are very motivated and that can be used against you in a negotiation. If the buyer sees a price drop that large they may think that you will go down more because you really want to sell. So don't be surprised if you get offers lower then your price drop, happens all the time.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
Web Reference:  http://raveis.com/chrispagli
0 votes
Carmen Brode…, Agent, Scottsdale, AZ
Tue Jun 14, 2011
I wouldn't cut 25% off in one shot. It is better to reduce in smaller increments multiple times, which would equal 25% in the end.
0 votes
Justin Ruzic…, Agent, Greenville, SC
Tue Jun 14, 2011
If your home was priced 150% over market value then a 25% reduction would not be enough! Your data is limited here, and thus any answer is skewed. You have a listing agent, listing agents want to sell your house, but we are human and we 'fear' losing you as a customer if we are brutally honest and tell you the listing price should drop 60% to get it sold, which would in my case put you at 90% of fair market value which would get a contract in short time...
Here is a blog about Market time...it is important!
http://blog.house-guy.com/2011/03/why-average-days-on-market…

best of luck to you. Tell your realtor, "we love you, we want you to sell our house, be brutally honest with us, we can handle it." (only if you truly can handle it.
0 votes
Cynthia Bell, Agent, Cedar Park, TX
Tue Jun 14, 2011
I agree with the previous post. If you received no offers, your overpriced. If you are working with a Realtor you need to find out what comparable home are selling for in your area to determine why yours is not. Three things get you an offer: Price, Condition, Location.

If you are not working with a realtor, you need to do the same thing. Find out what comparable homes in your area are selling for and get your home in the competition.

Good Luck!
Web Reference:  http://www.cyndibell.com
0 votes
Pat & Steve…, Agent, Westlake, OH
Tue Jun 14, 2011
I hope you are using a listing agent, who should be talking with you about about marketing your home. If your home has been listed for for over 100 days & you have not received a reasonable offer, then your home has been overpriced for 100 days. Have your listing agent analyze your market re what has sold, what prices your competitors are at and is there something wrong with your home that you need to address that is scaring away buyers.
0 votes
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