When should you reduce the price of your home?

When you list your Nanaimo house for sale, it’s important to price it right from the start.

Unfortunately, even when you price it right from the beginning it still may not sell.  Whether you define it as "price reduction" or " adjusting the price," no seller wants to hear this.

Still, there are times when reducing the asking price is the right approach. But before you do, there are a few things to consider to determine when or if you should lower the price of your house:

When you are in a buyer's market

The demand falls when the market is slow and inventory is high. This type of market is defined as a Buyer’s market. In a Buyer’s market, its often the case that a listing will not sell right away. If its important for you to sell your home in a reasonable length of time then it will make sense to list it at a price that will attract buyer interest.

When you have overpriced your house

If you initially priced your house too high and it’s not selling, you likely need to reduce the price until you are priced appropriately for houses like yours.  Your Realtor can prepare a market valuation to help you come up with the right number.

This is known as "chasing the market down," and it's not an ideal practice, but in some instances, it is recommended. Potential buyers may wonder why you have lowered the price. 

In case your home is not in good repair

Exceptional homes sell quicker, there is no denying it. Is your house immaculate? Is it set up in a way that best showcases the rooms? Is everything in its proper place and is the house free of clutter? 
Buyer’s make assumptions based on what they can see, attending to the smallest of details may have a significant impact on the time it takes to sell your home.

 Have You Overlooked Anything?

Ask a family member or friend to stop by and give you an honest, objective opinion of how your home looks.
Sometimes, we need a fresh pair of eyes to see anything you and your agent may have missed. Find it, and fix it; it might be the sole reason your house is still on the market.

Please note; if you're home during showings, you should stop. The presence of the owner usually makes the buyers feel uncomfortable.

When the market is saturated: is your marketing working?

If you're confident the market is right for you and your price is right, you might want to re-consider your marketing efforts. Before lowering your price, consider if you and your agent have exhausted all avenues to sell the house for what it's worth.

Here are some considerations;
•    How many hits are you getting from the MLS listing?
•    How many open houses have you held?
•    How many showings have you had?
•    Do you have good pictures for advertising the house online?
•    What forms of feedback do you get from buyers and agents?
•    What type of additional promotional campaigns are being used?

If you decide to lower the asking price, you should be strategic about it. Pull up the sales from other listings that lowered the prices too. You can determine the average price-reductions.

Run all the comparisons with the active listings near the price you're considering. If you're set on selling, then get the price right for the buyer you are looking to attract.

Every seller wants to sell their house at a reasonable price, and you should explore all alternatives before reducing the price of your house. But sometimes, you must choose between selling the property at a lower price or watch it languish on the market.

If you haven’t yet listed your house, we would be happy to supply you with a free market valuation and share our marketing plan with you.