By: G. M. Filisko
Home not selling? That could happen for a number of reasons you canít control, like a unique home layout or having one of the few homes in the neighborhood without a garage. There is one factor you can control: your home price.
These six signs may be telling you itís time to lower your price.
1. Youíre drawing few lookers
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think itís overpriced and are waiting for the price to fall before viewing it.
2. Youíre drawing lots of lookers but have no offers
If youíve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.
3. Your homeís been on the market longer than similar homes
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and youíre pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if thereís something wrong with it, which can delay a sale even further. At least consider lowering your asking price.
4. You have a deadline
If youíve got to sell soon because of a job transfer or youíve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: Itís not how much money you need that determines the sale price of your home, itís how much money a buyer is willing to spend.
5. You canít make upgrades
Maybe youíre plum out of cash and donít have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isnít as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, itís time to accept that buyers expect to pay less for a home that doesnít show as well as others.
6. The competition has changed
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and whatís still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.
G.M. Filisko is an attorney and award-winning writer who made strategic price reductions that led to the sale of a Wisconsin property. A frequent contributor to many national publications including Bankrate.com, REALTORģ Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.
Used with permission of the NATIONAL ASSOCIATION OF REALTORSģ. Copyright 2010.
All rights reserved.