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Figuring Home Price Reductions

Figuring what price reductions are necessary for you to sell your home in a buyer's market is not as easy as just lowering the price and relisting the home for sale. Several factors come into play when it comes to price reductions, and they should all be considered very carefully. It is also a very good idea to discuss any price reductions with a seasoned real estate professional like Karyn or Kimberly Schonherz. A Realtor® will be able to tell you what you need to consider before reducing the asking price of your home, and will advise you whether it is a good idea or not.

Reductions

There are many different reasons why you might want to make a price reduction. Your house may not have sold within the original listing time, or you might have priced it too high initially. There are a number of reasons why making a reduction in the listing price is a good idea, and these reasons include:

• Price - The price was set too at the outset with and there were no serious offers.


• Time on the market - The time has expired on your listing contract and the house has not sold.


• Problems with the house - A major defect has developed since the house was listed.


• Competition - If there are other houses like yours for sale at a lower price, you need to compete with those houses to stand out.


• Location - If you haven't anticipated something about your location that buyers might not like, such as a back yard that tends to flood, or a nearby highway that you may no longer hear.

Guidelines to Consider

If you do end up making a price reduction, there are some guidelines that you should keep in mind when you make the decision. It is important to remember that you are reducing the asking price of your home because you really do want to sell your home and are not just thinking about the money that it will bring in.

• Real estate agent - Your real estate professional is your friend in this particular matter, so give weight to their recommendations on price reductions.


• Pending sales history - Pulling the history of pending sales on houses will help you determine the average price reduction percentages and how long the houses were on the market.


• Comparisons - Compare sold prices and active listings so that you can see if there is a large difference between the prices.


• Look at the current market - Look at how long houses currently for sale like your own have been on the market and if any of them have lowered their prices. You can also look at how much they lowered their prices.

Real estate price reductions require careful contemplation. Trust the advice of a seasoned professional like Karyn or Kimberly Schonherz. The Schonerzes can be contacted at 714-283-6653.

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