When is it Time to Lower the Price of Your Home?

By: Melissa Henderson

When is it Time to Lower the Price of Your Home?

Tags: TORONTO REAL ESTATE, TORONTO CONDOS, TORONTO HOUSES, SELLING A HOME, LISTING PRICE, PRICE REDUCTION REAL ESTATE, MELISSA HENDERSON

All throughout the Province of Ontario, and especially for less expensive homes, it's been a seller's market because of high demand and little supply. Not every home may not sell, and not all of them will sell fast.
 
As a result of a decrease in available listings, the market has become more competitive, driving prices higher at a quick pace. Overpriced listings that remain on the market for too long tend to lose their appeal. Potential buyers will pass on your listing because they notice the number of Days on the Market (DOM) your condo or house has been listed for is higher than normal. To avoid stalling in the search results, start by dropping your price before your listing goes stale. So how do you know when and what should you do?
 
Similar Condos or Houses in Your Neighbourhood are Priced Lower
Of course, you'd like to earn as much profit as possible while still being competitive with other listings when you set a list price for your home. Pricing your home requires finding an agent who will be honest with you upfront. In some cases, an agent in an interview, prior to listing will provide an ‘inflated listing price’ for value knowing it is unrealistic but hoping this will be the basis for you choosing them. Steer clear of this type of agent! It is important your agent provides a thorough analysis of Sold homes, along with an interpretation of the data.
 
Looking at current homes that are For Sale and comparing homes that are most similar to yours may be helpful. Where are you positioned? Does your home's pricing match the current market? How long are other homes on the market before they sell?
 
You’re Not Getting Any Offers or Showings
To figure out why you're not getting any offers or few showings, ask yourself whether your pricing, your listing, or your property is to blame. Are there appointments from Buyers to see your place, but no offers are coming in, or are potential buyers simply staying away?
 
It seems that many who look at the home for the first time are interested in the stated price, but they're not excited when they visit the home in person, or they feel they can find a better value for a different home elsewhere for the same price. If you can correct this, you can likely avoid reducing your asking price by making some radical improvements to your property, such as cleaning, renovating, or staging it. A potential option would be to undertake a repair job if it is cheaper than reducing the price. If the home is broken and you either can't or refuse to fix it, then you may need to decrease the price. However, if no one's asking to see your home at all, then it's most likely the pricing of your listing that's to blame. Maybe it is time to switch real estate agents?
 
Most sellers don't want to drop the price; therefore, their inclination is to make a series of smaller reductions to soothe their own suffering. This technique should be avoided because it is slow and requires several minor reductions before potential buyers notice the change, so you are simply delaying the sales process. Instead, you should choose a price that is attention-grabbing enough to bring new people to your property.
 
There is no one size fits all guideline on whether to lower your listing price, but the considerations listed above should help you with your decision. So, in essence, research the market and work with it, rather than against it.
 
Are you considering putting your home on the market? I am Melissa Henderson, a real estate agent that aims to get your home sold for the highest price possible in any market!

Click here to get in touch with me today!