The list price of your home is one of the most important factors to consider when placing your home on the market. It is always smart to invest in the advice of a seasoned real estate agent not only to help you determine your list price, but also to help you determine when it may be necessary to lower the price of your listing after going unnoticed on the market for an extended amount of time. Before making the decision to lower your listing price, consider asking yourself (or your realtor) the following questions.
- If there are homes in your area similar to your own that are listed at much lower prices than your home, people are likely to give the other homes a look before visiting yours. That’s not to say that your home may not be justifiably worth more – which, in that case it is important to create a listing that highlights the features that will make your home stand out as being worth the extra money.
2. What is the average amount of time local properties spend on the market in your area?
This is a great question to ask your real estate agent and an important one as well. If your home is taking much longer to sell than other homes in your area, then it could very well be time to consider reducing the price.
3. Has market value changed since you listed your property?
This is certainly something to consider and also something that your real estate agent will be able to make you aware of. Sometimes you have to make adjustments according to what the market is doing and we all know that the market can have a mind of its own at times. Unfortunately, just because your home is worth a certain amount today doesn’t mean it couldn’t be worth something completely different tomorrow.
4. How does your home measure up to the competition?
This is where a comparative market analysis (or CMA) comes into play. Don’t know what that is? Well, your realtor does and this report can give you lots of insight into your home’s worth compared to other similar, recently sold homes in your area. These reports are prepared by the real estate agents themselves and can serve as a great guide to knowing when the right time is to lower the price of your home’s listing.
5. If you decide to lower, how low should you go?
When it comes to reducing the price of your home’s listing, the price reduction needs to be significant enough to capture the attention of potential buyers. However, it is also important to know where to draw the line because you don’t want to sell yourself short. Sometimes the better decision is to take your home off the market completely for the time being, rather than risking selling your home short of its value.
Are you looking for a real estate agent that can help you throughout the negotiation process of buying or selling a home? Melissa Clements can answer all of your questions and will do the necessary research to ensure that you are getting the best deal possible on your home. Contact Melissa today and let her help you throughout the entire process of selling your home.