When
Is The Right Time To Reduce The Price
Every
homeowner must set an asking price when listing their home on the market, but
what happens when you don't receive any offers?
Just as it's important to know when it's time to sell, it's important to
recognize the right time to reduce the price.
Supply
& Demand
If a
lot of homes are currently listed on the market or your home is overpriced, it
may be time to consider a price reduction if you hope to stay competitive. If five different stores sold your favorite
soda, what would motivate you to buy from one over the others? If you are like most, the cost would be a
leading factor. The same is true with
home buyers, who are looking to get the best value for their dollar.
Hurry
Up & Wait
If
your home has been listed on the market for what is considered to be a lengthy
time for your area, it may be time to consider a price reduction. This is especially true if you are in a hurry
to sell, which may be the case if you are planning to purchase another house upon
selling yours. In some cases, a homeowner
will make an offer on another house and that offer will be contingent upon
selling their current home. When this
happens, the homeowner is likely to be in a hurry to sell so that they can
honor the terms of their new agreement before it expires. Real estate can often be a waiting game, but
sometimes it may be necessary to hurry up the process, through a price
reduction, if you need to complete the sale.
Market
Value Fluctuations
We
all know how the market fluctuates. If
you own real estate, property values can go up one year and fall the next. If your house is currently listed and the
property values have fallen, you may want to consider reducing the price in
order to remain in the running with potential home buyers. If your house is priced far above market
value, most lenders would refuse to approve a loan for your asking price. Having an appraisal would be one way to know
how much your home is worth.
REALTOR®
Recommendations
If
you've hired a REALTOR®, you obviously trust him/her to guide you through the
process of selling your home. If your
REALTOR® suggests a price reduction, it may be in your best interest to
consider it. Nobody knows the business
like a real estate agent. They know what
buyers want and, in most cases, what they are willing to pay. If you've trusted a REALTOR® enough to hire
them, trust them enough to value their opinion.
See our website at http://naplesrealestateteam.com/ for more helpful real estate information and powerful search engines to help you find the home of your dreams.
See our website at http://naplesrealestateteam.com/ for more helpful real estate information and powerful search engines to help you find the home of your dreams.