Selling Your Home: Do You Need to Drop Your Price?
Your home isn’t selling but you don’t know why? There’s a nagging feeling that it may be the price. Pay attention to that feeling, it’s probably right.
Our Bradenton, Florida market has suffered the biggest decline in home prices than any metro-market in the United States. We have lost over 16% of value in the last twelve months. For the whole year, last year, we lost 18% in value.
If you home is on the market and not selling, what can you do to make it sell? Maybe nothing or maybe a lot of things. Nine times out of ten the problem is the price.
Selling your home is an emotional experience and choosing your asking price is crucial. Ask too little and you’ll leave a lot of money on the table. Ask too much and buyers will not be interested. The trick is finding just the right price; one that attracts the interest of buyers and put the most money in your pocket.
How many times have I heard a seller say, “I’m not going to give it away,” when talking about pricing their home for sale. This statement is usually accompanied by a lot of emotion.
Of course you don’t want to give your home away. That’s a given. Also, if you do decide to give it away, please give me a call first. I am currently accepting free homes.
Here’s the question: If you home is on the market, and it’s not selling, do you need to drop the price? Here are the signs that a price reduction may be in order.
Do You Need to Drop Your Price?
1. If you are getting no showings, you may need to drop your price. I tell listing clients that if the home isn’t being shown it means that even agents aren’t excited about the property. They don’t think they can sell it and won’t even bother showing it to their buyers. A five to ten percent price reduction may be needed.
2. If buyers are not calling your Realtor asking to see the home, you may need to drop your price. If a home is listed in the Multiple Listing Service, advertised on the internet, and has a sign in the yard, buyers know about that home. If buyers know your home is for sale and they still aren’t asking to see it, it means they aren’t interested, at least not at your price. A five to ten percent price reduction may be needed.
3. If you are getting a few showings but no offers, you may need to drop your price. Buyer will not even make an offer on what they consider an overpriced home. They will simply move on to other homes for sale.
How many showings is enough? Generally I believe you should have an offer in ten to twelve showings. If you have no offers you may need a three to five percent price reduction.
4. If you are getting a lot of showings but no offers, you may need to drop your price. It’s exciting to get a lot of showings, but disappointing if no offers materialize. What does it mean? It means that buyers are interested in seeing your home, but they are still finding better bargains out there. Your home is actually helping sell your competition. A three to five percent price reduction is needed.
There there other factors to consider besides price? Sure, there is location, condition, marketing, and financing. But remember, 80 to 90 percent of getting your home sold is price. Nothing matters as much as price. Price it right and watch it sell.
Copyright © 2007 By Dan Forbes, All Rights Reserved.
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Please give me a call if you have questions abour our Bradenton real estate market. You can reach me, Dan Forbes, at 941-746-0505 or toll free 877-646-8326. Also visit my web site at BradentonFloridaRealEstate.Com
