When Should You Lower Your Home Listing Price?
The U.S housing market is showing signs of potentially cooling down soon and this is good news for homebuyers. For home sellers, it’s a battle to enter the market and take advantage of the current high home prices before they start to decline. In recent weeks, we have witnessed a few sellers lowering the listing price of their homes as demand starts to decline.
We have also witnessed a drop in buy intent online phrases like “homes for sale” on search engines like Google for the last few months. Rising interest rates have contributed to the reduction of demand and many sellers are now revising their listing prices.
Assuming you are a home seller in this market, how do you know it’s time to lower your listing price? That’s what we shall discuss in this post.
If you have listed your home and you are rarely getting any attraction or inquiries, chances are buyers are scared of the high listing price tag. Price is one of the major factors that buyers consider and they can easily move to the next listing once they ascertain that your home is overpriced.
Is your listing getting high traffic with low offers? Or high traffic but with negative feedback from prospective buyers especially on pricing? Those are clear signs that it’s time to lower your home listing price.
With adequate market information, you can review your home listing price after every two weeks. You can wait for three weeks once you list your home to see how the traffic will be and the kind of feedback that you will receive from potential buyers. Having a clear understanding of your local market can help you predict how long your home will stay on the market. If you sense that your home will likely stay on the market for more days than the average days, it’s time to reconsider your listing price.
Your realtor will also look at other factors that can affect your listing conversion rates such as photo quality, multiple listings, and customer feedback, and give you tips on how you can improve it.
Understanding listing price reduction
The concept of lowering your home listing price is a good option that you should consider if market dynamics change. The more your home stays on the market, the more the chances of lowering the price even further.
It’s advisable that you should not make more than three price adjustments in your listing as this can send a negative signal to potential buyers. Some real estate agents also advise their clients on the best way to slash their listing price in a single review to align with the market trend instead of doing it multiple times which is not recommended.