Understanding Real Estate

When To Reduce Your Home Selling Price

All property sellers want their properties to fetch the highest prices possible. Sometimes, however, a high listing price may prevent your home from selling within your preferred timeline. Here are some of the situations in which it may be advisable to lower your listing price:

The Listing Is Attracting Few Viewers

There are several reasons a property may not attract many viewers, for example, it might be that the listing pictures are of poor quality or you are in a buyer's market. However, a high listing price is also a common reason for lack of interest in a property. Don't automatically reduce the price for such a property; instead, review the pricing mechanism to confirm whether the listing price is accurate or not. Reduce the price accordingly if the review reveals that the price is high.

You Get Many Viewers Sans Offers

You should also be suspicious of your pricing model if your listing is attracting many viewers, but few of them are making actual offers on the property. It might be that the viewers are attracted by the listing pictures, the description of the property or its location, but they are being kept away by your asking price.

You Have a Tight Deadline

There are also cases where it may be in your best interest to lower the price even if it isn't actually low. This may be the case if you are on a tight deadline and want to sell the property as soon as possible. Maybe you have received a lucrative job offer in another state, or you have already identified another property to buy, and you want to use the sales proceeds from your current home for the purchase. In such a case, lowering the price may make it more attractive to buyers who may be pushed to buy it fast to lock out competitors.

An Inspection Reveals Defects You Aren't Ready To Fix

Lastly, it may also be advisable to lower the price of your property if an inspection has revealed defects that you weren't aware of when coming up with the initial price. This may be the case if an inspection has revealed hidden termite damage or issues with the foundation, and you don't have the time or resources to fix the defects. Reducing the price makes sense here because the defects affect the price of the property so it can't be worth as much as it was before the defects were discovered.

For more information, contact local real estate agent services