Your home has been on the market a few months and now your agent is suggesting lowering the listing price. No one likes the idea of netting less money, so it’s justifiable that you are hesitant to do so. To make a solid decision, you should ask yourself…
Has my agent provided data in support of the numbers?
A listing price should be the fair market value of your home. This is determined by similar homes recently sold in the past 6 months. This information can be found by your agent in the Multiple Listing Service. If other similar homes in your community or area have sold for less than your home is listed for, you should consider lowering the price. When buyers sees a house listed significantly higher than others, they assume that the seller will be unwilling to negotiate.
Has showing feedback revealed the home is priced too high?
We always approach showing feedback on price with a bit of caution. If a couple of agents say a home is overpriced, but their clients might have some interest, that may just be a negotiation tactic. However, if the majority of agents are saying the home is priced too high, it likely is. The agents are viewing homes in a specific price range. If they are seeing other homes in better condition and with superior features, they’ll make sure to note it.
Am I getting showings?
If your home is in an active price range and you aren’t getting showings, revisit your list of recently sold homes. There’s a buyer for every property that’s priced at fair market value. Even if your home isn’t in the best condition, if it’s priced in accordance with comparable homes in a similar location, it will get showings. If you don’t get showings, you won’t get a buyer.
Do I need to sell?
When you listed your home for sale, your agent should have been very transparent on their expectations for listing, including their marketing strategy and price reductions. Local real estate markets are constantly adjusting according to supply and demand. If your home has only been listed a couple of months and a price reduction is in no way an option, you need to ask yourself if you really do need to sell. If you aren’t going to make the money you need off the sale, then you may find it more favorable to rent out the home until the mortgage is paid down and/or listing prices have risen.
Remember, the longer your home sits on the market, the harder it will be to sell it, because it implies there’s something wrong with the home. So, don’t sit on a price reduction too long. If it doesn’t make financial sense to you and you aren’t getting showings, now may not be the time to sell. If you need to sell, you can always do a small price reduction to see if generates any activity.
If you have any questions about selling your Wilmington area home, give us a call at (910) 202-2546 or send us a message through our Contact page. You’ll always get a straightforward, honest assessment of your home’s market value.