Why Isn’t My Home Selling? Should I Do A Price Reduction and Why

Why Isn’t My Home Selling? Should I Do A Price Reduction and Why

When selling your home, optimism can quickly sour into sordid disappointment when your house sits on the market for too long. Before you blame the housing market or your realtor, you should dig into the underlying reasons regarding why your home is not selling. At this point, it’s time to put on your problem-solving hat and take a new approach.

There are no dead-ends when it comes to property sales. Improving the property to raise the value or negotiating to lower the price are some of your options. In all honesty, the reason a house doesn’t sell is 99% because of the price of your home. However, before you and your real estate agent make a decision or try harder to appeal sellers, look for the tell-tale signs that your asking price is too high.

On average, a seller who accepts an offer after being listed for one week has a 57% chance of selling at the list price. By their second week, they have a 50% chance of selling at the list price. This percentage continues to drop progressively over time, from 39% in the third week to 32% in the fourth week. It would appear that those odds continue to reduce by around 8% per week. This assumption is based on a nationwide market and might not apply to your local market if real estate is in high demand 

Hints That Your Asking Price Is Too High

Not all properties need a price reduction just because of bad offers. However, if you frequently experience these signs, a reduction might be in store for you. Check with your real estate agent to compare pricing in your neighborhood.

No Traffic and No Offers

If you received no traffic or offers after two weeks of listing your home, it might be due to two things. First, confirm with your real estate agent that they are properly marketing your home. If they provide you with tangible proof that they’ve been strongly advertising your home across platforms, then it could be the asking price.

Good Traffic Bad Offers

After you’ve received multiple offers, but none of them are up to par, this is both good and bad. Congrats, you are getting lots of attention! Unfortunately, you’re not attracting the right buyers. If there are major defects with the house or the location isn’t great, this could be why.  

House Has a Low Appraisal

After an initial pre-sale inspection, you might find that your home isn’t as high value as you hoped. This may also happen after the buyer puts in an offer and the appraisal states a wildly different price than agreed upon. The buyer might try to renegotiate the contract or completely withdraw their offer. If this is the case, speak to your Realtor® about improving the price.

Negative Comments and Feedback

When buyers tour your property and respond with negative comments, don’t take it to heart. Instead, take notes. Their feedback is key to appealing to new buyers. You can fix the issues that they pointed out. For example, if they all mentioned that the kitchen was outdated, you can incorporate things such as a backsplash, new appliances, and more fashionable lighting. Also, you can’t hope that the next buyers will overlook any issues you haven’t previously addressed. Be open to what buyers are requesting to obtain the highest home sales price.

On The Market Longer Than the Average

The real estate market is always changing. If your home is taking longer to sell than your anticipated time frame, you might have to make a few updates or reassess the price. Staying in touch with your real estate agent will help keep the momentum. They can make sure they are advertising regularly. 

Complications Preventing Open Houses

Perhaps your house is beautiful and the appraisal is high, but showings and open houses are frequently bombed. Loud and embarrassing neighbors, extremely noisy and busy streets, or limited scheduling may deter visitors. You and your real estate agent can collaborate on creative ideas to sweeten the deal in your home sale to overcome these issues.

Nearby Homes Are Significantly Lower in Price

Location is a big deal in real estate. When the neighboring houses have lower market value, your home will be appraised with their price in mind. If the material value of your home is high, the other houses in your neighborhood will always play a part in your home’s market value. Even if you made expensive renovations or constructed new features, the appraisal value could still be hampered by your location. 

Solutions To Your Home Selling Woes

Don’t fight your buyers over price. You should be confident about your home and the price that you’re offering. Working with your Realtor® can help you tackle what works best for your goals while appealing to buyers.

Address Buyer Feedback

If a few visitors commented on issues in your home, you can work on that. Put aside a budget to take care of quick fixes that can brighten up a room. You can also lean on your real estate agent to incorporate home staging to impress new visitors.

Fix Health and Safety Issues

Health and safety are not only crucial to buyers but also to inspectors. For more serious technical problems, you may have to work with a certified professional. One example is that the price of your home may be drastically lower if your house has plumbing issues. Investing in a health and safety issue typically improves the ROI while increasing the purchase price of your home.

Strategically Do A Price Reduction 

You can resort to reducing the price but in a fair way. A real estate agent typically would encourage you to take off a minimum of 3%. The price reduction can be anywhere between 3% to 7%, or up to 10%. Price reductions can intrigue buyers who previously browsed your listing, opening them up to requesting a showing.

These useful strategies will help you make smarter financial decisions with real estate. Now you and your Realtor® can hone closer to the asking price of your home with potential buyers. If you want to know how can a seller raise the asking price, reach out to one of our knowledgeable Dale Sorensen real estate agents. In addition to accurate content to help you once your home is on the market, we also help you explore better options. Visit us at one of our locations in Vero Beach, Melbourne, Sebastian, Hutchinson Island, and other neighboring areas in the Treasure Coast and Space Coast regions. Contact us today about pricing your home.

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