Pricing a listing competitively from the beginning is the best way to attract buyers, your first three weeks on the market are the most important. There is always a pool of buyers out looking for new homes… so when a new home comes on the market – that pool of buyers will schedule a time to see the home if it meets their criteria, typically within the first one to three weeks of the home being put up for sale. After that, you’ll have to wait for a new buyer to enter the market that is interested in seeing your house.
If it doesn’t sell in the first three weeks, sellers can also spark some interest with a strategic price reduction.
- If you have had little buyer activity and no offers after 14 days, it may be time to lower the price in order to appeal to active buyers in your area.
- Don’t wait too long to make an adjustment if it becomes clear that prices in your neighborhood have fallen since your home came on the market. If a competing property is reduced first, your higher price could make your property less attractive to buyers.
- The longer a home sits on the market the more likely it is to be perceived as undesirable. Buyers may start to assume there is something wrong, even if it was simply overpriced compared to the competition.
- Delaying a price reduction could end up costing you – if your property takes several months longer to sell, you still have to pay the mortgage, property taxes, insurance, maintenance, etc.
- The longer a home sits on the market and doesn’t sell – the more a buyer wonders “what’s wrong with this home and why hasn’t someone else bought it?” – even if there’s nothing wrong with the home… and then often times, buyers won’t visit a home just because they think something might be wrong since someone else hasn’t purchased it yet.
Price Cuts Become Par for the Course
Here’s some statistics on price reductions.
- 56% of seller said they lowered their asking price at least once
- 44% offered incentives such as warranties or closing costs to help get a home sold
- 6+ months inventory of available listings in Phoenix = diminished sense of urgency for buyers
- The average price reduction was 11% of the price of the home – typically below what their agent suggested listing it for as a new listing
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