Many homeowners will price their homes on the high end to start. While that’s not a bad thing, keeping it that high for an extended period is. Set a deadline for when you’ll lower the price if you haven’t received any serious bids. Then stick to it.
Keeping the price high for three, four or even five months can hurt your chances of selling. The for sale sign sits in your yard gathering dust while the Days on Market (DOM) builds up on the listing making your home seem like there is something wrong with it. And there is something wrong with it: the price.
Create a timeline of how you’ll lower the price on your home. Maybe every two months, take it down $25,000. Plan something that you’re comfortable with, but also get some input from your real estate agent. This will help you reach the highest price someone will pay for your home without scaring away potential buyers with such a hefty price tag.
Make sure you look at your home from the buyer’s perspective. If you’re not getting any serious bids, check out the other homes for sale in your neighborhood that are similar to yours. Does the price of your home stand out above the rest for no good reason? Do the other homes seem like a much better deal than yours? If so, you may want to consider lowering your price right away.
Planning when to lower the price on your home ahead of time will help take the stress and emotion out of the situation. In the professional business world, companies spend thousands of dollars to determine the best price for their product that will help it sell. You pretty much are going off of a mix of what you want to make and what comparable homes are selling for. So it’s all right if the price of your home has to come down a little before you get interested buyers. Who knows, after you drop your price, you may even attract multiple buyers that will bid each other up closer to where you started.