who sells a home wants the highest possible price. Sometimes, the only way to
get the highest price is to reduce your present asking price. Most homeowners
who have placed their homes on the market are hesitant to reduce the asking price
prior to receiving an offer. This is understandable. There are, however, certain
circumstances that dictate a price reduction may be necessary to get the house
sold. Let’s look at some of the important considerations:
THE ORIGINAL PRICE: Was the original asking price for your home
correct? Who set the original asking price? If you, the owner, set the price,
were you realistic in your expectations? If the Realtor® set the price, was
it based on a careful study of comparable properties? It has been my experience
that the homeowner usually plays a major role in setting the price. Once the asking
price is set, the owner may become very rigid when asked to consider a price reduction
in order to make the home more competitive with surrounding homes. In order to
sell your home at the highest possible price, it may be necessary for you to reevaluate
your asking price from time to time.
SHOWINGS: If there are not many showings on your home, pricing
may be the problem. When buyers are considering which homes to see, they may feel
that your home does not offer enough features when compared with other homes in
your price range. If there are many showings but no offers, price may be the problem.
Your home may include the features and location that attract showings, but, upon
closer inspection, buyers may feel the price is not justified.
MARKETPLACE: Perhaps the marketplace has changed since your home
first became available. Although the original asking price may have been correct
at the time of listing, it may no longer be adequate to attract buyers away from
competing homes. Real estate values do fluctuate. They respond to changes in the
economy, interest rates, local taxing and zoning decisions.
ADVICE: Consider your Realtor’s advice regarding a possible