What about a price reduction? 3 things to think about.

Before you put your home on the market, you agent will very likely given you a number… the price at which the home is most likely to sell in the current market. This is not an arbitrary number or a vague opinion, it is based on the same factors an appraiser will use. You may or may not take your agent’s advice, but when your home has been on the market for a while you’ll likely begin to get anxious. A price reduction is not always the only answer, so here are a few things you’ll want to consider

If you feel that your home is listed at the right price but your agent is suggesting a reduction consider this… If your home is priced correctly, showings will be frequent. Lots of showings but no offers to purchase? This may indicate that there is something about the home that is a concern to buyers.
To-Do: If there is something that needs fixing or freshening (old carpeting, outdated colors, pet odors) address it now. If it’s not a drawback but more a matter of taste (pool or spa, floor plan or room sizes, neighbor’s property) you may actually need to re-visit your price. It all depends on the length of time you are willing to remain in the home.
Suggestion: Have your agent set up a search for you of homes in your price range, in your area, and similar to yours. These are your competition. Can you compete? Your agent will be keeping an eye on this, you should too.
- Consideration: Buyers frequently have a similar search set up. Their attention is usually drawn first to new listings and price reductions next, because they feel they’ve seen all the rest. Another reason to price it right in the first place.