We are in a seller’s market which means there is a higher demand for homes than there is inventory. Despite this fact, however, if your home is not priced right chances are it won’t sell quickly.

According to Zillow, nationwide, 12.9% of sellers reduce the price of their house at least once. If you’re thinking about doing a price reduction, consider this – the longer a home is on the market, the lower your odds are of selling it for list price. Sellers who accept an offer within the first week of listing have a 57% chance of selling for list price. During week two, it’s 50% and then it drops to 39, 32, and so on. This is based on national data – if you live in a strong sellers market, your odds of selling for list price, and quickly, are much higher.

Set the Right Price in the Beginning

Selling your home is a major life milestone. One of the most important things to remember is that you only get one chance to make a first impression.

According to St. Petersburg realtor Estelia Mesimer, a common mistake sellers make is pricing a home too high and then lowering it periodically. Even in this competitive market, buyers do not want to pay more than what the comparables show, so it is critical to get it right the first time. Pricing too high can backfire.

Indicators your home needs a price adjustment

• Neighborhood comps are priced lower. When you select a list price for your home, you want to get as much profit as possible, while still being competitive with other listings. How to price your home to sell is a bit of an art form, and that’s why many sellers end up adjusting their list price within a few weeks. Take a second look at other similar homes for sale in your neighborhood. Is it possible you priced your home too aggressively given your current market? Are other similar homes selling more quickly?
• You’re not receiving offers. While there are multiple possible reasons why nobody’s biting on your home, price is often the culprit. If buyers feel like they can find a similar home at a better value, they’re unlikely to put in an offer, or even set up a showing. If people are viewing your listing online but not submitting an offer, or if you’re getting open house attendance but with no results, your price could be the problem.
• You’re having few showings. Foot traffic coming through the door is a great indicator of the attractiveness of your list price. Open house and showing traffic tend to drop off after the first two weeks, so you’ll know pretty quickly if your price isn’t resonating with buyers.
• Your home appraised low. Savvy sellers often pay for their own appraisal before they list as a way to get an objective opinion on an appropriate list price. If you haven’t gotten an appraisal already, it might be money well spent. If the home appraises well below your asking price, then you have your answer. Or, if you’ve had a contract fall through due to a low appraisal from the buyer’s appraiser, that’s another good indicator that a price adjustment might be a good idea.

Price reduction strategies

Act fast. According to HSH Mortgage, if the number of showings and open house attendees drop off significantly after the first few weeks your listing is active, you need to take action. When you’re discussing what the new lower price will be, make sure you are satisfied with the amount. Is it realistic?

Only reduce the price once. Nobody likes to make a price cut, so sellers are often inclined to make multiple small price adjustments to ease the pain. Avoid this strategy — it can take multiple small reductions before buyers finally take notice, so you’ll only end up prolonging the sales process. Instead, decide on a cut that’s significant enough to jump-start interest in your home. According to Zillow, the average price cut is 2.9%.

Bottom Line: The more you overprice your home, the fewer buyers will come to see it. Remember buyers have all the data in their hands in today’s real estate markets. And that’s another good reason why you should work with an experienced, neighborhood-knowledgeable realtor from the beginning.

Related Resources:
How to know when to drop the asking price on your home
Selling Your Home in a Seller’s Market

St. Petersburg Communities

If you’re interested in any of these of communities or live in one of them and are thinking of selling, call Estelia today!

Allendale Terrace
Bahama Shores
Bayway Isles
Coquina Key
Crescent Heights
Crescent Lake
Downtown
Greater Pinellas Point
Historic Kenwood
Historic Old Northeast
Historic Roser Park
Historic Uptown
Isla del Sol
Old Southeast
Placida Bayou
Snell Isle