When most homeowners list their homes, they're hoping to secure the best selling price possible. Our REALTORS® know that each of our clients listing Ann Arbor homes for sale are relying on a financially successful home sale to fund the next chapter of their lives. While we will always act in the best interest of our clients, we believe that all home sellers should be aware that certain situations may warrant a price reduction on the property. When is it appropriate for a seller to reduce the asking price on their home? Here are a few common reasons.
- Comps are Lower
Before you list your home, your agent will evaluate the comparable properties to identify a reasonable price for your home. If after you've listed your property you notice that many comps are now significantly lower — or worse, they're selling when yours isn't — you should lower the price to stay competitive.
- Long Listing
If you've been showing your home without receiving any offers, there's a good chance that it's been quite a few weeks since you've first listed it. When buyers see a home that's been sitting on the market for an extended period, they may wonder what's preventing the sale — and be hesitant to investigate the home themselves. After a certain time, it's routinely suggested that sellers lower the asking price reasonably.
- Buyer Feedback
Potential buyers who have seen your home will have their own opinions, and many of them will be largely based on their own personal preferences, but you must take note of any feedback that begins to display a pattern. If specific issues are continually brought up, such as curb appeal or a lack of square-footage compared to similar homes in the area, you may need to consider lowering the price. This is especially true if these issues, like square-footage, cannot be immediately changed.
- The Market is Unfavorable
The real estate market can fluctuate at any time in any area. Despite your best efforts, a poor market may contribute to your slow home sale. By lowering the listing price, you can potentially standout amongst other properties and increase your odds of securing a sale.
- Time of the Year
Regardless of the market's status, there are times of the year in which it is typically more difficult to sell a home. This is especially true during the holidays. If you've listed your home during the colder month, you may consider lowering the asking price to incentivize the limited buyers searching the market.
- REALTOR® Suggestion
Your REALTOR® is on your side until the end of the line. They share your goal of selling the home as swiftly and successfully as possible. To achieve this in a way that ultimately caters to your best interest, they may use their expertise and years of experience to advise you of the best ways to move forward. At times, this involves lowering the listing price. Trust in their professional judgment and let them help you achieve this goal.
Are you ready to list your home for sale? Contact us today to get started!