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I have a 4BR townhouse on the market - listed 3 weeks ago (prior to that FSBO for 2 months). Have had only a few showings and am receiving "encouragement" from realtor to drop the price. There are 4 other units on the market in the development with ours being the largest (and only 4BR). Also we are in a better location than 3 of the others. Is this an appropriate time to reduce the price or will that only prompt the other units to reduce their prices.... and then we all lose (or win if we all sell!)? I appreciate your insight.
3 weeks is a long time to go with no offers even in a slow market. Your agent is doing his/her job by advising a price reduction.
Especially since you have had few showings, that is a strong sign that buyers for the most part are not even considering your property at the current price.
If you reduce your price other units may well follow suit, but in the meantime you will have the better chance to sell.
3 weeks is a long time to go without an offer?? Really. I think in a slow market you are doing well. It just depends on how quickly you want to sell, what you want to make, and if you want to give your home away.
3 weeks is a long time to go without an offer?? Really. I think in a slow market you are doing well. It just depends on how quickly you want to sell, what you want to make, and if you want to give your home away.
Yes, it does depend on your market, but there's no way to say you are "doing well" unless you have decent interest being shown.
Here in Sacramento county (a very slow market presently), the median days on market for homes that sell is 48.
38% of homes that sold this year accepted their offer within 30 days of being listed. This is the best opportunity to get a good offer.
If a home does not sell within the first 30 days, the chances that it will sell in the next 30 days are only half as good... 19%.
And of course, the longer a home sits on the market, the less likely that anyone will offer close to the asking price... next thing you know, yours is the house that's been on the market five months and has everyone wondering "what's wrong with it?"
Bottom line: If there were buyers out there who wanted that house at that price, three weeks is more than enough time for them to find it.
You really have to also take into consideration the time you also had it listed as a FSBO which means it has been on the market for 3 months.
That is a good point, but we don't know how visible it was as a FSBO, for example, on the MLS or not, so for the general public it may have been visible only the three weeks. We also don't know if the price was lowered during the FSBO period or at the time it was listed.
There is no hard and fast rule on when it's time to drop the price, but the clincher for me is the fact that in this case there have been "few showings." If a home is priced right there should be a flurry of activity within the first two weeks on market. Not necessarily a ton of offers, but at least strong interest.
We dropped the price by $20K from the initial FSBO starting point and we were not listed in any MLS so didn't get much visibility. I have heard that one month on the market is the typical point where price reductions are considered. It has only been 18 days! We had one open house and another planned for this weekend. I feel like we should wait a little longer before taking the reduction plunge. Anyone agree?
I have a 4BR townhouse on the market - listed 3 weeks ago (prior to that FSBO for 2 months). Have had only a few showings and am receiving "encouragement" from realtor to drop the price. There are 4 other units on the market in the development with ours being the largest (and only 4BR). Also we are in a better location than 3 of the others. Is this an appropriate time to reduce the price or will that only prompt the other units to reduce their prices.... and then we all lose (or win if we all sell!)? I appreciate your insight.
What is the condition of the other homes on the market?
How are you priced in comparison with the Actives?
How are you priced in comparison with the Solds?
What is the price were the homes were taken off the market (Expired)
What is the average DOM of the Actives?
What is the average DOM of the Solds?
What is the ratio of the Sold price to the final Listed price of the Sold comps?
What is your listed price?
Does your home show well?
When you answer all those questions for yourself, then you will have a better idea of whether you should lower your price, and what the new price should be.
There have been times when sellers have raised their price to a search point and sold it fairly quickly. Example is a home listed at 340 and increased to 350 so that people searching for 300 to 350, and from 350 to 400 can find the home.
If the average DOM in your local area is 110 days, don't expect to sell the home in 18 days without a ton of luck. Those average DOM tells you that there are fewer buyers out there and it takes longer for the one buyer for your home to find it.
I honestly don't know much about this like everyone else so take my opinion with a grain of salt. Our house has been on the market for 9 days. Not one single showing yet. Our market is very slow with most houses sitting 6-12 months before selling. From other people I have spoken to most didn't even get showings the first month or two. Our house is priced to sell, there are just no buyers in our area. For us, just listing our house we have lost money. Every penny we drop the price means more money we have to pay the day of closing. We did not want to sell but have to due to dh's job. We were not prepared to sell our current home and loose money while also buying a new home in a new state. We will not be dropping our price until we do a public open house (had one but it was last minute and not advertised) and a broker's open to get some feedback. I think you need to consider what the market is where you are at.
Are you significantly higher in price than your competition? If not, I think you might want to consider waiting on dropping the price. Dropping it so soon will make you look more desperate. Unfortunately, it seems a person either sells a house within the first week, or it takes 6 months. Sometimes waiting it out will yield you the right price.
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It's only been 18 days!
