How do you know when its time to reduce the home asking price? First you need to determine what the asking price should be, based on market data. Keep in mind that the home your trying to sell is worth what some one else is willing to pay. When you receive multiple offers the price goes up because more people are willing to pay the original asking price. If you receive no offers and the home has been on the market for a while, the selling price will likely be less than the original asking price. You should know the condition and the upgrades the that sold and how they compare to your home. That is the best way to set a competitive asking price for your home. Also consider asking more than the highest sale in an appreciating market and less than the lowest sale in a depreciating market. And don’t forget to leave room for negotiating.
In general, it is time to re-evaluate the home, the neighborhood and the market if you go with out an offer for 30 days
If your home has been on the market for 30 days with a sufficient amount of showings with no offers something is wrong and it may be the price. But it could also be the upgrades, condition, decorating, furniture, curb appeal, landscaping or a thousand other things. An experienced agent like myself can tell you after evaluating all the factors involved. Its best to get our advice before you set the asking price not after because a mistake becomes part of the market record for the home and stays with the home.
Market Conditions Matter
The market conditions are changing right now. There is some debate on the direction and no one really knows but the market has slowed. Many people say the change is seasonal and it happens every year at this time. While others say we are in a significant market slow down that will not change with the seasons. The facts are that there are more buyers now than sellers nation wide. However higher interest rates could put a good portion of the buyers on the side lines. The volume of sales has dropped but appreciation has continued despite higher interest rates. No one really knows how long the current conditions will continue but there is nothing I can point to that will change the current market conditions.
Orange County is no different than the nation but the prices are significantly higher than most of the country and that has to be factored in with gauging the market. If you see homes selling every month the market is good. If homes are not selling reduced prices are ahead and right now the average time on market has doubled since last year but paradoxically prices are still up a fraction. How long will this discrepancy continue is anyone’s guess.
The Dangers Of Overpricing
If you haven’t been watching the market closely, it could cost you dearly to price your home yourself. This is because there is a good chance you will either under price and sell too low and too quickly or over price your home and never recover. Overpricing is more likely and when you over price, the qualified buyer will not look at your home since its out of their price range. If you had priced it correctly to start with you would have an offer from a qualified buyer. Other buyers are scared off because of the time on the market and the higher price. Unfortunately your home will spend more time on the market, buyers will think there is something wrong and not go see it for that reason alone. Its very important to price your home correctly and you should seek the assistance of an expert like me.
Know What Motivates Buyers
Buyers have more data available to them than ever before. From previous sales to school data buyers know the market better than ever. And because the buyer know the market they also know if your home is over priced. You need expert advice to maximize the value of your home before you decide to sell. If you have questions about the right price for your home don’t hesitate to contact us.