The saying “timing is everything” is so true, especially when it comes to real estate. The longer your home stays on the market, the less likely you’ll be getting a full price offer on it. So how do you know when to reduce your list price? After all, maybe you just haven’t found the right buyer yet, or maybe your home will sell tomorrow. Both of these things may or may not happen. The question is, can you take that chance? How do you know when to wait and when to reduce your price? Here are five tips to help you determine just that.

Few Showings in the First Two Weeks –  The first two weeks of a listing are extremely important and are usually the busiest time. If your home has been on the market for two weeks and you’ve only had a handful of showings, then you know it is definitely time to lower your price. An overpriced home is the biggest deterrent to a home buyer. It makes sense too. Why would a home buyer look at a home that is priced above the past sales in the neighborhood — or even the current active listings — when they have other more reasonably priced homes to view?

Related: Top Three Things You Shouldn’t Do When Negotiating The Purchase Or Sale Of Your Home – Tracey’s Real Estate Tip Of The Week

Lots of Showings, But No Offers –  This is a major red flag that it’s time to lower your price. If you’ve had numerous buyers look at your home but haven’t had one offer, then you have to know something isn’t right. Buyers are simply not seeing the value of your home at the price listed. Your options are to either lower the price of your home or put additional amenities or upgrades into it. I wouldn’t recommend the latter because we all have different tastes. What you may think is beautiful, another home buyer may not, so it’s best to reduce your list price.

Your Home Has Been on the Market Longer than Similar Homes – When you first list your home, your agent will usually give you an “Average Days On Market” report. This report simply shows how long it took similar homes to sell in your neighborhood. If your home has been on the market for 45 days and the average days on market is 30, then it’s safe to say it’s time to lower your price. When a home sits on the market for an extended amount of time, buyers begin to wonder what’s wrong with it and why it hasn’t sold.

Your Own Deadline – If you have to sell your home quickly because you’ve already purchased a home, or you have a job transfer and have to start on a certain date, then you may need to lower your price. Ideally, to get your home seen and sold quickly you should always list your home at or just below the past sale price of homes similar to yours in your neighborhood. This is going to attract a lot of viewings and ultimately a quick sale.

Your Home Isn’t as Nice as the Other Listings –  You just don’t have the money to put a fresh coat of paint on the walls or have the carpets cleaned, so what can you do? I’m afraid there aren’t a whole lot of choices here. You need to price your home accordingly to past sales and current active listings. If your home isn’t as nice or upgraded as the other listings, then you have to take that into account and price it accordingly.

There are always variances to every situation, but these are pretty strong indicators that you may need to lower your price. Getting feedback from agents who have viewed your home is also recommended. There is a buyer for every home, it’s just a matter of finding that buyer!

Tune into KHTS AM-1220 every Friday at 8:40 a.m. to hear more on Tracey’s Real Estate Tip of the Week!

About Tracey Hampson and Tracey’s Real Estate Tips:

I have had the pleasure of living and working as a realtor in Santa Clarita and the surrounding areas for more than 14 years and I love sharing real estate tips with others. Throughout my Santa Clarita real estate career I have had the privilege of assisting buyers and sellers of Santa Clarita homes with their individual real estate needs. I’m here for you as well.

I hope you enjoyed my real estate tip of the week and if you have any questions, concerns, wants or needs regarding real estate please don’t hesitate to contact me. I’m here to help.

Tracey Hampson
Century 21 Troop Real Estate
License 01429142
(661) 993-6124
Thampson@Troop.com