No one wants to have this conversation. I promise. You don’t want to have it, your partner doesn’t want to have it, and your Realtor doesn’t want to broach it. But sometimes you can’t avoid it. Especially when you started too high in the first place. And we promise; the initial pain will ultimately bring you what you’re after. Here’s what we consider when the first price wasn’t the right price:
Why. Let’s start with the “why” behind needing a price adjustment: If you’ve noticed a drastic slow-down in showing activity. If you’ve been hearing constant feedback about the price being too high. If you’ve been sitting on the market while your comps go under contract. If you’re still on the market after thirty days with no offer and no real interest. It’s time.
How Much. This one depends. Most of the managing Brokers we’ve worked under since we started our real estate careers back in 2005 recommend a slash of 10%. So let’s say you’re priced at $275,000 – your reduction would be $27,500 which yes, is a doozy, but it will put you into a new threshold – and that is a game changer. Now all the buyers who have set their search only up to 250K will get an alert emailed to them that a new listing meets their criteria. Fresh eyes on your home! And all of a sudden you have a whole new pool of buyers clamoring to get in. You did it!
Second Thoughts. But, wait. Let’s go back to the part about almost 30 grand (a beautiful car paid for in cash). I know. The shock settles and you re-think the reduction amount and plot to manipulate the system by doing a small cut to get back on people’s radar. Buyers these days are smart. They know the tricks too. And truth be told, if someone was interested in your home, they would make an offer for 10K less if they thought that would do it. You don’t want to reduce twice. Take one meaningful slash off the top and you will save so much time, and money, in the long haul. Multiple reductions are like knife wounds in the water and the sharks start swimming.
Motivation. Why are you selling? Do you already have a home you want to buy? Are you transferring positions and need to start by a certain date? Are you an empty nester looking to downsize? No matter your motivation; you already went through the grueling steps to list your home for sale, prep it for showing after showing. All of these new stressors in your life taking up space. Consider your monthly bills, the time you take to clean/ maintain, the cost of owning two properties. The anguish. We have been in this position (a few times) and it starts to bleed over to other parts of your life. Consider the toll, then act accordingly. If you followed the advice above and made a meaningful cut, this will pay in dividends. You are now back in control, and at the top of the list in your new set of comps. Don’t move on like a wounded soldier, stay strong in your position and hold fast with your price. You never know, multiple offers may come a knocking.