Is It Time to Drop the Price of My Home?

If your house has been on the market for awhile you're probably starting to get a little nervous about when--or if--it's ever going to sell. As hard as it might seem, you're thinking about dropping the price of your home.

But how do you know if you're adjusting to a more accurate price or if you're selling yourself short? Think through the following before biting the bullet.

Is your home priced competitively?

If not, then a price change might be a good idea. Take a look at some homes in your area that are comparable to yours in location, size, and recent upgrades. If yours is significantly higher, it might be overpriced. Your Relator can help you with this process and can advise you on whether or not your home is priced competitively. 

If you're not priced competitively, it's time to decide what a fair asking price actually is. If it comes to this, it's important you let go of emotional attachments. Remember, the way you feel about your home might be worth the extra $10,000 to you, but a buyer isn't going to have that same attachment.

Work with your Realtor to figure out what the lowest price you're willing to accept is, then slowly lower to that price.

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Are you marketing your home properly?

No offers have come in, but is that because the price is too high, or simply because people haven't been hooked? Your home is beautiful, in a great school district, and perfect for a growing family. The only problem is, so are all the other homes in your part of town.

Just like anything, chances are you need to make sure your home is being marketed properly in order to bring in potential buyers.

Take a look at your online listing and make sure everything is accurate and that you're accentuating the best features of your home. Ask your Realtor what else she is doing to help get the word out about your home.

And don't forget your own networks. Share you listing on social media and ask your friends to share it also. It might seem like a silly thing, but your social networks are likely full of people who are similar to you and who would be interested in the same types of homes you are. 

Can you sweeten the pot?

Depending on the market conditions, even homes that are competitively priced may not be moving as quickly as you like. In that case, you may need to sweeten the pot a little to make your home more desirable than others in your area.

Let your Realtor know if you're willing to cover the buyer's closing costs or if you're ready to throw in a year-long home warranty, which will be especially appealing to first-time buyers who might be wary of having to pay for repairs that would normally be the landlord's responsibility. 

Is everything in tip-top shape?

We always talk about staging your house for selling or at least making sure your curb appeal is there, so if you were hoping to sell your home on the merits of it's "bones" alone, you might need to rethink that option. 

Get your timing right

Lowering the price of your home can be a big deal. Mentally, it feels like a defeat and you're probably wondering if you're losing out on profit from your sale. But if home prices in your area are dropping and you wait too long to follow the trend, you might still be overpriced even after you lower because everyone else has lowered also--and if you have to lower it too many times, it gives the perception that there's something wrong with your home.

This is where it's important to work closely with your Realtor and be sure she's closely monitoring comparables to keep you informed of when--and by how much--you should lower the price of your home. 

No one wants to think about lowering the price of their home, but it might be time. Once you sell it and move into your new home, it'll be worth it.