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Should You Change Your Listing Price?
If your house has been on the market for two months and you are not receiving any offers yet, it’s time to look at the bigger picture. It might be because the price is too high, you might think. But you will also realize that if the price is too high, how come nobody is complaining?
You need to know how to read the lines. The fact that you only have few views and no offers means that your price does not favorably compare with the prices of other houses. The lack of interest means that after prospective buyers compare your home to other properties on the market, the price of your house is not catching up with the market value of same houses in your neighborhood. If your house is overpriced, it gives an advantage to other homes on the listings.
Take note that there are some months in the year when the market is very slow. In a slow market, you can only get say, two to three showings in a month while during selling season, you may have 15 to 20 showings. In deciding whether you need to lower down the price, you have to consider seasonal factors, market conditions, and how long same houses like your get sold and for what prices. In Napa real estate, the agents know when low season is and plan accordingly.
If you don’t have an encouraging message after dozens of showing, not counting those who attended your open house, don’t procrastinate. Lower the price unless you are willing to do some improvement to your house. Another valid reason not to mark down your house in when it is unique and appeals to limited market like if it is the only two bedroom in a three-bedroom neighborhood. Is your house one of those without a basement? Having these unique assets makes you want to hold on longer to high price as your buyer just hasn’t shown up yet.
If the market is slow, you don’t automatically drop your asking price unless you have urgent reasons. Slow seasons can be caused by bad weather, change of priorities, vacationing, not so good economy, etc. The market starts to improve by early March. The months of March and April are the ideal time to list your house for sale. It will be easier for you to sell your house if it caters for an upper-middle-class bracket and you are in a place where corporate transferees are typical. The first quarter of the year is the time when most companies release their budgets for the relocation of management personnel.