Is it too soon to drop price

auggie1020April 24, 2011

Hi all:

We listed about a month ago. We listed at 700, as this is the price that our agent told us "we needed to be at in order to sell." Other agents that we interviewed suggested listing prices of 700 to 750. We wanted to be aggressive so we listed low. I realize that the last month has had a lot of spring break/holidays etc. We have had 6 or 7 showings and a agent open house. All positive with everyone saying house is priced right and will sell. We have had a family situation come up and we need to move a lot quicker than we normally would--so we would take less than before this came up. Can anyone suggest best way to jump start this process and get offers? Reduce price by substantial amount? If so, what would you suggest would get everyone's attentiona and perhaps get some of the people who have come through to make an offer; would this send a bad signal or would it send the right signal (i.e, we are motivated and willing to take substantially less to sell the house) or will it just invite low-ball offers off of the reduced asking price. Any other thoughts on how to spur this along? Thanks for your help.

Thank you for reporting this comment. Undo
terriks

Since you are currently at $700k I would drop to the next "break point" of $675k or even $650k.

    Bookmark   April 24, 2011 at 8:43PM
Thank you for reporting this comment. Undo
LoveInTheHouse

I asked a similar question last month and I'm still unsure what to do so I'm glad you asked this. I have also gotten a lot of positive reactions and I even know they're not bullcrapping me and just being nice because we can tell who goes to our website--the ones who said they loved the place are still clicking on it and looking at it often. So it's been frustrating because no one has bought it yet. I've come to the conclusion that a lot of people would like to have it, but THEY are just not ready yet for one reason or another. So even though you and I might be priced right, and even underpriced a little, we're at the mercy of the other people and I think unless we really drop it to a discounted price which would inspire the real bargain hunters, it's just going to take a while. Curious to see what everyone else says.

    Bookmark   April 24, 2011 at 10:31PM
Thank you for reporting this comment. Undo
kats_meow

We recently sold our house. We did reduce our price when we relisted. We reduced it to the top of the next search range bracket. We were a little worried about it that it would attract offers reduced way below the low asking price since with the lower price we didn't have a lot of leeway for further reduction. However, that did not happen. We did get an offer within a few days after relisting (we had 4 showings within a few days). It was not a lowball offer and we settled on a price that was close to our asking price.

    Bookmark   April 25, 2011 at 1:32AM
Thank you for reporting this comment. Undo
maurenemm

If I remember correctly, our agent said that we would re-evaluate the list price after 3 weeks of it being on the market. So, I don't think it is too early to drop the price.

How has the weather been in your area? I'm told the buyers really start coming out after the weather starts getting good. But, if you really need to sell, I don't think I'd hesitate to drop the price.

    Bookmark   April 25, 2011 at 8:15AM
Thank you for reporting this comment. Undo
chrisk327

Reallly depends on many different things.

in my area that would be close to the top end of the range that my town is in. All houses in that range (by me) seem to take longer to sell unless there is something about the house that is amazing.

Basically there are only a handful of buyers in that range and they have their own timing, readiness etc to worry about and you have a hard to making them move.

at the low to middle end of the market, you have a larger pool, who if you drop the price it can spur interest and action among some of the people.

Also, this is my area, yours could be the same, or differnet.

    Bookmark   April 25, 2011 at 11:50AM
Thank you for reporting this comment. Undo
kats_meow

FWIW, we were on the higher end range for our area and found that dropping the price did make an immediate difference (we were on the market 7 months without an offer last year and had a contract within a few days of relisting this year at a lower price). There are relatively fewer buyers in the higher ranges and they have lots to pick from but dropping price did help as it did still bring in more buyers.

    Bookmark   April 25, 2011 at 4:34PM
Thank you for reporting this comment. Undo
sweeby

"We have had 6 or 7 showings and a agent open house. All positive with everyone saying house is priced right and will sell."

Do you eBay? If you do, you'll know the mindset where you think At this price, it's a steal, and even though I don't absolutely LOVE it, it's such a great deal... and you buy it anyway? Versus the "I LOVE that widget, and I'll go up to $XYZ to get it" From the comments you've heard, it sounds like you're listed at a good price for the "I love it" crowd -- one that's very reasonable and presents no real objections, but not so low that the "I don't really love it, but..." crowd can't resist.

How much of a discount would YOU demand to make you buy a house you liked but didn't LOVE? When you knew you were in a buyer's market with lots of supply (assuming this is the case in your area) and that this might be a once in a lifetime opportunity to get your dream house for a price you could afford? (Again, assuming that's the case.) For me, that discount would have to be really, really big.

Rather than reducing the listing price, what about adding "Motivated Seller" to your listing (though that might imply pre-forclosure...) and offer a generous decorating allowance. To me, a $50,000 decorating allowance might be more appealing than a $50,000 price difference if I didn't like the kitchen or master bath but wouldn't normally change them...

    Bookmark   April 27, 2011 at 8:08PM
Thank you for reporting this comment. Undo
arch123

Rather than reducing the listing price, what about adding "Motivated Seller" to your listing (though that might imply pre-forclosure...) and offer a generous decorating allowance.
I have a question about this - If the appraisal comes in
under the offer and you have to lower your price - how would this affect the generous allowance. Or would it?

    Bookmark   April 28, 2011 at 7:35AM
Sign Up to comment
More Discussions
Planning on selling my house
We live in a 35 year old home for ten years now with...
4boyz
For those of you who have swapped out your brass hardware....
For those of you who have swapped out your brass hardware,...
Lizzie
Realtor company fee
Buyer agent told me there is $300 fee to realtor company....
net42k
Lady Realtor coming to house at 6:30pm and its dark outside?
I was looking up homes for sale around me on trulia...
tlbean2004
How to Flip. Remodel doubles price of house
The prices are San Francisco values, but it's a terrific...
sushipup1
People viewed this after searching for:
© 2015 Houzz Inc. Houzz® The new way to design your home™