Guest Blogger: Need to Reduce the Asking Price of Your Home?
Guest Blogger #846, Entry #2019, January 17, 2012
Although it seems that the real estate market is back on the road to recovery, we’ve still got a long way to go. Certainly the foreclosures that have dominated the last several years have started to dry up, but prices have yet to rebound, despite the apparent stabilization. And while you might not be under the same pressure to sell your house as those who suffered from layoffs and underwater mortgages over the last few years, still you’re no doubt looking to sell as soon as possible once you’ve listed your property. You might be interested in purchasing another property, or you may even have gone into escrow. But with so many low-priced houses still on the market you could still have a hard time unloading your home. In this case, it may be necessary to reduce your asking price. But it’s a decision you’ll need to consider carefully.
Image via: JC-Design
Can dropping your price have a negative consequence?
Although you might be under a time crunch that prompts you to drop the asking price of your home in order to expedite the sale, you need to be aware that there could be some consequences. Naturally, you’re likely to make less money on the sale of your home, unless by some miracle your gamble garners the interest of multiple parties who are willing to engage in a bidding war that raises the price. But this is unlikely for a number of reasons. In truth, your choice of price and the timing of dropping it is only bound to have a negative impact on your ultimate ability to sell and get anywhere close to your asking price.
The trouble is that once you list a property and drop the price, buyers will wonder why. Although it has been a common enough occurrence throughout the recession, still people are likely to speculate as to what is wrong with your home that it hasn’t sold. If you wait quite a while to drop the price, it will look as though there is something holding buyers back from purchasing your parcel. But if you drop it too quickly after listing, people will know that you’re desperate to sell. Either way, real estate agents representing interested buyers will use this knowledge to their advantage to try to get you to reduce the price even further.
Image via: Stonewood
Dropping the price options:
Of course, if you are desperate to sell or there are major flaws to contend with, you may have no choice but to drop your price. But if you can manage, a better bet may be to delist your property, wait a while, and relist it at a more competitive price than before. You certainly want to get everything you can out of your home, but if you flub and price it too high initially you are less likely to get a nibble than if you start a little lower than other homes in your area, and this could leave you with little choice when it comes to dropping the price if you mean to sell in the near future. Your West Hills or Wesley Chapel real estate agent will no doubt tell you as much. So if you’ve been unable to sell your home because of a too-high asking price, consider carefully before you drop the price. You may still have other options.
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