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Hi. I was just wondering how long you wait until you might wait until advising a seller to lower their asking price? We went on mls 2 weeks ago-I had presented the question on this forum and everyone agreed going on sooner than waiting to March-which I am happy we did. My realtor hasnt mentioned it yet. Thanks
It depends on how overpriced you are now and how quickly you need to sell. I try to get my sellers to list correctly from the start but many want to start a little high. I explain why it's a mistake but I tell them I'll go along if they'll reconsider after 30 days.
In an ideal world every home seller bases their prices on the same sort of data that home buyers and appraisers rely on -- valid recent sales of comparable properties. Unfortunately there are still many areas where prices haven't stabilized, where the number of sellers exceeded the number of buyers, where the supply of existing homes is far in excess of historical norms. In such cases one is forced to start with a realistic listing price that is very close to the bottom of the range of comps. If you did not take those factors into consideration a price reduction will probably be needed AND the likelihood of attracting willing buyers even with that initial price reduction may not be good...
Unless the property has a "limited appeal"'(which happens both at the high end and the very lowest end of offerings,mess frequent in the middle) most real estate agents will recomend that a property that has had "good exposure " for 30 days (with no weird weather to keep people cooped up or extenuating circumstance) is a candidate for a price reduction. That reduction needs to be done by analyzing the other active listings -- if there are literally no other properties close in price / features it is harder to justify changing the price...
Thank you-right now we don't have any recent closings in my area-not a lot goes for sale here. There is one in contract now and another which is listed slightly higher than mine. There are 2 that are asking about 200k less than mine but they are on corners on a much busier road. I am leaning towards waiting out March then lowering my price-that would give it 60 days. Thanks for the replies.
Personally, I feel asking for a price reduction should be the other way around...why the heck are you keeping better track of reductions than your agent? If I feel my clients are not properly priced, I add dates to my listing agreement indicating when I'll ask for price reductions. Typically, I make the request every week until we're priced right.
Quote:
Originally Posted by amyla
Hi. I was just wondering how long you wait until you might wait until advising a seller to lower their asking price? We went on mls 2 weeks ago-I had presented the question on this forum and everyone agreed going on sooner than waiting to March-which I am happy we did. My realtor hasnt mentioned it yet. Thanks
Whether or not to reduce your price and when is a VERY location specific question and certainly a discussion you should be having with your agent. If you think the price should be reduced then approach the agent and talk to them about it. If they agree with you that it should be reduced but haven't asked for the reduction then I'd say there's a problem there.
It really depends on your location though. For example, houses sell FAST in my town. The good ones when priced within shouting distance of market value go under contract in less than a week. So you would think if you're not under contract in two weeks then you should reduce your price right? WRONG. If the house we're talking about is at a certain price level, it's going to take longer to sell whether or not it's at the right price. There are just fewer buyers who have that kind of money. It sounds obvious when I say it but too many people watch too much HGTV and get crazy ideas.
Frankly, it sounds to me like you're in a very slow market area and it's going to take a while to sell your house whether it's priced right or not. If you have 10 showings a day every day and no offers that's a bad sign though. There are just so many factors which go into this.
It depends on how overpriced you are now and how quickly you need to sell. I try to get my sellers to list correctly from the start but many want to start a little high. I explain why it's a mistake but I tell them I'll go along if they'll reconsider after 30 days.
This, except I prefer 2 weeks over 30 days and I want the lower price agreed upon in the listing agreement to kick on X date.
In my market in Austin, we expect an offer by the 15th showing. If we have 15 showings the first 2 weeks and no offers (plus the feedback we gather from showing agents), we drop the price. If we get to 30 days without 15 showings, we drop the price.
There are exceptions, but stats show that the average listing sells with about 15 showings and the average buyer looks at about 15 homes (sorry, I don't remember my source for this). So that guides my thinking and it seems to work most of the time.
This, except I prefer 2 weeks over 30 days and I want the lower price agreed upon in the listing agreement to kick on X date.
Thanks-I used this timing and we lowered our price by 2 1/2 %. We have gotten 2 offers this week both about 2 1/2 % off the lower price. We accepted one-it had the better terms-had the inspection and the lawyers have spoken. If nothing crazy happens we will have a signed contract by the end of the week-Thanks for your response
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