Should we adjust price?
I am looking for pricing (adjustment) advice. I hesitate a bit to put this out there, because my experience is that most of the posters here jump pretty quickly to "drop the price, cut your losses, and sell the darn thing" without taking time to understand the nuances of individual markets. So now that I've implied I don't trust your advice :-p, I'll toss this out there anyway.
We've been listed with a realtor for 5 months. We're in the upper 10% price-wise, so traffic has been slow, as expected. About half the showings have said we're in contention, and have had follow-up questions or showings, but no offers, and none of these people has bought another house yet. Agent says "I don't know what to do to get the buyers off the fence."
Meanwhile, nothing else within $75K of our price has sold. Until a month ago. 2 properties have gone pending, and are suitable comps (finally the market can tell us something!). They both say our house is worth about what we had it appraised for a year ago. We priced 5% above that, to allow room for negotiation.
BTW, the buyers of those 2 homes did not look at ours. One wanted a basement and the other wanted closer to the next town for commute purposes.
So, will a price reduction get these potential buyers off the fence? If so, how much?
Option A: Drop it about 3%, have the agent call the fence sitters and encourage them to move.
Option B: Drop it 5%, to what the comps tell us we'll sell for. This also gets us to a round number which should theoretically bring in the next lower tier of buyers. Except that the reverse lookup says the same number of people are looking at our current price, at 5% less (the round number), and at 8% less, so I'm not sure in this case it expands the pool, though this is just those getting auto emails from realtors. And of course dropping it to market value makes it likely we'll get offers for even less.
I wonder why someone seriously considering our house, if they thought it was overpriced, wouldn't just offer what they thought it was worth. Agent tells us people hesitate to lowball, and wait until the price drops to make an offer. Really?? One of the above comps went pending at 90% of list 2 weeks after listing. I'm not sure I'm convinced.
Your thoughts? Bring it on.