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5 Reasons to Decrease the Price of Your Home

By on September 27, 2011 in Money

5 Reasons to Decrease the Price of Your HomeHas your home been sitting on the market without much activity? Are you receiving low-ball bids, or worse yet, no bids at all? Numerous reasons can cause this to happen, but one of the major reasons could be the listing price of your home. If you’re having a hard time selling, you may need to take a step back and evaluate whether or not it may be time to decrease the price of your home. If you’re working with a real estate agent, then you should discuss this with them as well.

Reason #1 Nobody Comes

When a home first goes up for sale, it typically gets a flood of viewers. This is because it is fresh blood. Potential buyers want to be able to get to a new property before their competition does. If you put your home up for sale and nobody or very few people start to look at it right away, then it may be time to look at the price you have it listed at to see if it isn’t priced where it should be.

Reason #2 Lots of Lookers, but No Bidders

Another indication that the price of the home is not right is if you have a lot of people looking at the house, but nobody is putting an offer in on the property. A large amount of lookers is relative, so for example, if you have had 40 people come through your home in a two to four week period and have not received a single offer, then talk with your agent to see if it is a pricing issue.

Reason #3 You Need to Sell Fast

If your reason for selling your home is because you are moving out of town or you have already bought a new home, then you may want to lower the price of the home so it will sell faster. In other words, if the time it takes to sell your home is slightly more important than the price you get for it, then you should consider decreasing the price in order to increase the chances of selling.

Reason #4 Similar Homes are Selling

If similar homes in your neighborhood or immediate area are selling but your home is not, this is an indication that your home may be overpriced. For example, if the average selling time for the same homes in your neighborhood or similar homes in your community is 45 days, and your home has been on the market for 60 days, it is time to reevaluate the price of the home.

Reason #5 When Upgrades or Repairs are Needed

If you’re in a position where some painting and replacing of fixtures in your home is necessary, or there are repairs that need to be made, but you can’t afford it, then a price decrease may be the answer. You can lower the price to cover the approximate cost of repair costs so that the buyer gets the home at a fair price and can use their remaining money to make the necessary upgrades or repairs.

While there are numerous reasons why a home is not selling, price tends to be one of the primary reasons. If your home is on the market but you’re not seeing the activity you want, consider the listing price, and talk to a real estate professional to see if a price decrease may be the answer.

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