No nibbles after three weeks? Time to evaluate your pricing. How many of these signs apply to you?
1. Few People Looking At It
Have you had many showings? In a warm seller’s market, you can expect at least 10-12 showings in the first couple weeks for a mid-range property. If you have had only a few showings, you need to ask why. Has the property been adequately marketed? If so, it is likely that potential buyers (and their brokers) are waiting for a price reduction before coming to see it.
2. Lots of Lookers But No Offers
If you’ve had 30 buyers through in the first 21 days but no offer, something is off. Ask your broker to pursue feedback from other brokers about pricing, condition, etc. If the price is out of a realistic price range, buyers often hesitate to make an offer.
3. Home Stagnant in Market
Learn the average number of days on market for your size house in your location. Subtract from this number the current average number of days for closing. For example, if average days on market is 60 and average days for closing is 45, if your house is priced right, you will likely be under contract within 15 days. How long has it been on the market?
4. A Deadline to Sell
Do you need to be across the country at your new job in 3 months or want your kids be settled before school starts? If you need to sell quickly to meet a deadline, your home must be priced as a value – one of the two best values in your area. Comparing sold and for sale statistics for your area will help you see what actual selling prices are. Price at a selling price, then hold firm.
5. You Can’t Make Upgrades
If you can’t afford fresh paint, new plants for curb appeal, or a small bathroom redo, price accordingly. Buyers will not purchase a house that needs upgrades, unless it is priced as a house that needs upgrades. Many buyers are looking for fixers or cosmetic fixers – price it right from the start! The faster it sells, the better price you’ll get.
6. Your Competition Has Changed
When you put your house on the market, ask your agent to set you up with an automatic email of any comparable properties that come onto the market. Keep track of what has sold and how long it took to sell. As your competition changes, your pricing may need to change.
Nuts. We’re Overpriced! What now?
Ask your broker to compare sold and for sale prices. Base your pricing off of comparable SOLD data from your micro-neighborhhood within the last 6 months. If you are priced too low, the market will correct the price with multiple above-asking offers. And remember, statistically the best offers come at the beginning of the selling period – your goal should always be to price at market level from the beginning.