House Not Selling: When to lower the price

These signs may be telling you it’s time to lower your price.

You want to sell your house and have been on the market for a few weeks and not getting offers. 

This can happen for a number of reasons outside your control such as new construction in your neighborhood, unique floor plan or having one of the few homes without a garage.

•  Not getting many showings:  Listings tend to get the most interest in first few days of going on the market because buyers want to get to it before others make an offer.  If you are not getting calls and showings it may be a sign buyers believe the property is overpriced and waiting for a price reduction before looking. 
  
• Getting plenty of showings but no offers:  If you have had a two dozen showing and no offers something is wrong.  Have your agent get showing feedback, is there something buyers do not like about the property or is it the high price? 
  
• Time on the market:  Compared to similar properties has your house been on the market longer?  Find out from your agent what the average days on the market are for similar sold homes.  If the average is 20 days and you are at 40, and getting positive feedback on the house, it could be the asking price.
  
• Timing of the sale:  If you have a deadline or have already purchased another house it may be a good idea to generate interest by lowering your asking price compared to other homes in the area.  Understand you property will sell for what a buyer is willing to pay not the amount you need. 
  
• Curb appeal:  When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others. 
  
• Competition:  After being on the market for a period with no offers look at the competition.  Find out what similar homes have sold for and what new listings have come on the market.  If this information indicates your asking price is too high, it may be time reduce.

As you can see not getting offers for a house on the market is price but it is a powerful buyer motivator.  In our experience, buyers will pass on a house with a high price rather than making a lower offer.  It is extremely important to price your house competitively from the start.  The most interest from buyers is generated in the first week to 10-days.