Tell-tale signs your asking price is too high
If you think you might have set the asking price for your property too high, you probably did. But if you need a guide so you can tell if the house is overpriced, Look below:
1. Not enough showings
A home is likely overpriced if it doesn’t get any showings in the first couple of months it’s on the market. Your real-estate agent should have access to data on how many hits an Internet listing gets.
If a home doesn’t make a buyer’s “showing cut,” and people don’t think it’s worth the time, hassle or gas to deserve a look, it’s probably overpriced, said Dave Crumby, broker/owner of another Assist-2-Sell brokerage in Tempe, Arizona.
2. Some showings, but no contract
Let’s say the number of showings isn’t a problem, yet there still have been no offers.
If you’re getting showings but not getting a contract, that means you’re still not quite low enough. Remember, there’s way too much competition out there. Price your property accordingly.
10 showings and no offer or two weeks with no showings, you are probably overpriced for the current market.
3. Similar homes are now selling for less
In markets where the median price is falling, it’s important to regularly monitor what homes are selling for. Make sure you are getting up-to-date information on the market to determine whether the property is still priced correctly.
4. Repeated negative feedback
If multiple buyers who do walk through the property have the same negative reactions to it, that could be another red flag that the price needs to be dropped. Heck, some potential buyers will even say that you are asking for too much. At that point, what I do is offer some benefit such as a remodeling of a room or paint or carpet or something. This tactic usually keeps the door open for more negotiations.
5. You’ve cut the price, but not by enough
Never price a house too high when you put it on the market. However, If you do need a price cut, do not cut by small increments. Several smaller decreases could make a seller look desperate, but a larger decrease will generate more interest. In addition, price decreases make excellent marketing gimmicks for your agent or broker. I alwasys lower at $5,000 increments.
