Many people believe that reducing the asking price for your home looks bad to potential buyers, but it is often the only thing a seller can do to find a buyer for the house. If you listed your house a while ago and have not found a buyer, you might wonder when the right time is to reduce your asking price. Here are several factors you should consider as you try to decide when to drop the price:
How long ago did you list the house?
As you try to decide whether or not to reduce your asking price, you should first consider how long it's been since you listed the house. Did you just recently list it within the last couple of weeks? If so, you have not given it enough time to sell. On the other hand, if you listed it three to six months ago, now might be a good time to drop the price a little bit.
Are you still having showings or getting calls about it?
Secondly, are you still receiving requests for showings or calls inquiring about your house? While you would not know this, your agent will, as they will be the one answering these calls. If you are no longer getting showing requests, and no one is calling about your house anymore, it might be a good idea to reduce the price. If people are still viewing your house then you may want to give it a little more time before dropping the price.
How do other home prices compare to yours?
Another thing to consider is how your home compares to others that are currently up for sale. Is your home priced higher than other houses? Is your home in worse condition than these homes? If you did not set the right price on your house from the start, in comparison to other homes, you might have trouble selling it.
Has your agent marketed the property well?
Finally, you should consider how well your agent marketed your house. If the agent marketed it well, it might be another sign that you should lower the price.
It is hard to know when the right time is to drop the asking price on a house, but eventually you might want to consider doing this if you cannot find a buyer. If you would like more information about home selling, talk to a real estate agent in your city.