Knowing When To Reduce The Asking Price Of Your Home

Knowing When To Reduce The Asking Price Of Your Home

For most of us our house is our biggest investment, so when it comes time to sell it is only natural to try and make as much money as possible.

Your realtor can tell you what the normal 'days on market' is for homes like yours.  But if you find that you are getting a good flow of buyers looking at your home without anybody putting together a written offer, and your house ends up being on the market longer than normal, this is almost always an indication that your price is too high.

It's important to remember that in today's market buyers have choices, and with everything else being equal a qualified buyer will go with the house that offers them the best price and the best value for their money.  

That's why smart home sellers will know the details of the other homes for sale that they are competing with.  Savvy sellers will also have their realtor run marketing comparables on a regular basis, just to make sure that the competitive price that you set for your home when you listed it is still just as competitive.

If you did your competitive research when you listed your home, then another thing that you can do is to monitor the activity of your competition, to see if those are selling quicker than your house is, and at what price point.  There might be a home seller that you are competing with that has decided to drastically reduce the price of her home because she needs to sell and move fast.

This happens more often than not and if you are not monitoring the market you will get caught off guard, and end up losing qualified buyers to the home that's for sale down the street.