When it comes to selling real estate, which is more important: curb appeal or pricing? Curb appeal, right? After all, how many television shows are dedicated to pricing your home?
While landscaping and home-staging makeovers do make for better TV shows, a good pricing strategy is what will ultimately get your home sold.
But setting your price just right is easier said than done. According to a 2012 National Association of Realtors survey, 60% of sellers had to reduce the price on their homes at least once. Should you consider lowering your asking price?
Classic Selling Mistake Real estate agent Kirk B. said many buyers make the classic mistake of pricing their homes too high and promise to negotiate when they get an offer. This plan often backfires.
“Buyers are going to make offers on homes that are priced right,” Budd explained. “Not on homes that are overpriced.” Real estate agent Marni J. said she’s also seen buyers bypass overpriced homes. “You run the risk of not [having your home] shown at all because buyers think you are unreasonable.”
You Know You’ve Crossed the Line When . . . A lack of showings is a clear sign that you’ve overpriced your home, she added. “If you aren’t getting shown very much, then buyers are rejecting the price. It needs to be lowered.”
“If you haven’t had any traffic through your home in seven days, I think it is a must to lower the price,” Budd agreed. “Holding out for a higher price will typically cost you more in the long run.
If you make the decision to lower your asking price, the new price should be competitive without discounting it so much that you lose money on the sale. “Lowering the price needs to go hand in hand with what is happening in your market,” Budd explained. “It’s imperative to be in line with your competitors.”
Avoid the Problem With Expert Pricing Advice Obviously, the best strategy is to start with the right price. “If you price the home correctly in the beginning, there will be very little need to lower your price at all,” Kirk said.