Should you lower the price of your home if your house isn’t selling? It’s a fact: no homeowner in the world wants to leave money on the table when selling a property. That’s what makes correctly pricing a home such a delicate art. It’s natural to want to err on the side of caution, pricing your home a little too high, rather than a little too low. If you’re not on a timeline to sell, then employing this strategy isn’t the worst—you won’t risk anything, but you also may begin to second-guess your rationale if the home fails to bring in any offers right away.
It goes without saying that you’ll get the best pricing advice from a trusted real estate professional who understands your property and your local market, but there are a few tried-and-true best practices you’ll want to follow no matter who your real estate agent is.
Pricing Best Practice #1: In a seller’s market, don’t fear pricing too low.
If there’s more demand than there is supply in your marketplace, then there’s an excellent possibility that a home listed a bit too low will attract multiple offers and incite a bidding war. There’s little risk in giving this tactic a try, particularly if you’re not in a rush to sell and not under pressure to accept the first offer.
Pricing Best Practice #2: If it’s been on the market for an extended period of time with no bites, it’s time to go lower.
Now, this isn’t to say you shouldn’t exercise a reasonable amount of patience—in other words, if it’s only been a week, don’t be hasty. However, if it’s been a month or more, and the market is clearly hot, that’s a solid indication you’ve been too cautious in your pricing. Your home is worth what a buyer is willing to pay for it, and if none of them have so much as attempted to negotiate your listing price down a bit, then you’d be wise to reevaluate your expectations.
Pricing Best Practice #3: Compare the most recently sold listings in your area and re-assess your price point.
Market comps are incredibly helpful in determining the best pricing strategy for your home. Study them carefully—in addition to the latest homes that have sold, look at the trajectory of the prices over the last 12 months. And, of course, know that you’ll be able to proceed with the utmost confidence if you elect the help of an experienced real estate professional—one who is accustomed to analyzing market trends and pricing properties to sell quickly and for the best possible value.
Pricing Best Practice #4: Consider upgrading and relisting.
It might well be that with the right renovations, your initial list price will make a lot of sense. If you can pinpoint a handful of upgrades and improvements to justify a higher price tag for your home, you might even be able to raise the price of your property when you relist it. This option makes sense if you don’t need to sell within a specific timeframe. To ensure that the renovations you invest in deliver the returns you have in mind, make sure to work with vetted contractors who you can trust.
The best way to find a network of trustworthy contractors for home renovations—and the best way to ensure your home is priced the way it should be—is to work with a First Team Real Estate agent. Call us today to find yours so you don’t have to lower the price of your home after you hit the market.