4 Signs You Need to Lower Your Home’s List Price
The main goal for most home sellers is understandably to get top dollar for their home. With this as their main priority many home sellers can have inflated expectations for what their home is worth. Sentimentality is another factor that can inflate a home seller's expectation. These high expectations can cause some home sellers to create a high list price for their home leading to non-existent home offers.
Here are 4 signs your home's list price may be too high:
1. You’ve received multiple “low ball” offers
The first telltale sign that your list price is too high is if you are receive multiple offers that you perceive as low ball offers. Receiving one or two low ball offers is fairly common, especially in a buyer’s market where there is plenty of inventory. However, if you’re receiving low ball offer after low ball offer, it could mean that your list price is too high. If this happens over time, its a good idea to assess the offers that you've received to see what range they fall in, and adjust your list price accordingly to be more competitive.
2. There’s been high traffic but no offers
Another sign that your list price is too high and needs to be lowered is if you’ve had a ton of traffic at open houses and through private showings, but still have yet to receive an offer. High traffic means that at first glance your home is appealing enough to buyers to check out. If there isn’t a major problem that is scaring buyers off, it could mean that the list price is simply too high. Lowering your list price could put you in a position of receiving multiple offers from interested buyers, driving up the price of the home in the long term anyway.
3. Comparable homes have much lower list prices
One thing you and your agent should always keep an eye on is if comparable homes come up for sale in your neighborhood. As this begins to happen while your home is up for sale, you could notice that your home is priced much higher than comparable homes in your neighborhood. This is another sign that your list price could be too high and scaring off buyers. Adjusting your home’s list price as more comparable listings become available will make your list price more competitive.
4. Your home has been on the market for multiple months
A final sign that your list price is too high is if your home has been on the market for a long period of time. This is especially true if the real estate market is in a seller’s market meaning there is low inventory and a surplus of buyers. Lowering your list price could make your home more appealing to potential buyers and help pull you out of the no-offer lull.
Overall, there are a variety of factors that can cause your home to not get any offers. However, by doing some investigation and keeping these 4 warning signs in mind you’ll be better equipped to know when it’s time to lower your home’s list price. The best way to know what your home’s list price should be is to consult with a qualified Realtor who has experience in your area. They’ll have the tools and knowledge to help you price your home to sell.
