When Should You Reduce the Price of Your House?
I get calls from many sellers who ask me, why can’t I sell my house fast? Many Maryland home sellers stubbornly wait for that needle in the haystack. That needle in the haystack is the buyer who will offer the asking price or better on the sale of their home. These sellers have a subjective view of the value of the home, perhaps an over-inflated appraisal in the height of the market many years ago, or are unaware of true home buying/selling market conditions or other factors make them refuse to negotiate with potential DC Metro area cash home buyers such as myself.
Most of us would probably think that we are the exception and our home is properly priced. Here are several factors to consider and actual signals that it is time to lower your price.
It’s Time to Lower the Price When…
1.The House has been sitting vacant too long.Especially in the colder months, concerns about the furnace functioning properly and the potential for pipes bursting are to be considered. Once a few months have passed, it is obvious that no one lives in the house making it more vulnerable to break-ins and vandalism. Vacant houses do not sell as well as occupied dwellings. Perhaps it is because the potential buyer cannot imagine how the house would look occupied and it is less inviting to the eye. Again, if the vacant home sits too long it can lead to break-ins, squatters, fires, crime, and ultimately a reduced value of your. Most area city governments will not put up with vacant homes for too long and eventually the home will start costing you money.
2. You’ve had no offers. If multiple parties have come to look at your house and not one offer has been made, it might be time to reconsider the price. You may even want to contact one of the buyer’s agents to see what kept their client from making an offer.
3. You are running out of time. If you are building a new house or moving into a new house, the bridge loan can be a nightmare. Few budgets can afford making two house payments each month. A reduced price on your home is a better alternative than getting into financial difficulty. Maybe you are relocating and need to complete the sale of your house before it becomes a long distance issue. Selling to a reputable DMV area cash homebuyer that can act fast could prevent several problems down the road.
4. Your home is incorrectly priced thanks to Zillow™ – While this website considers the location of the property, is does not consider the condition of the home or the current market factors that are affecting price in a particular area. Some agents abuse the site by leaving sold properties still listed and at the original asking price, not the final selling price. Read more
5. You have a sentimental attachment to your home. If we live in our home for any length of time, we have created ‘just the right use’ for space and design that we have. Its quirks are ‘special features’ to us and may hold happy memories that have no real value to a prospective buyer. If you truly want to sell your home, you have to set aside your emotions and make wise financial decisions. This can only benefit you as you establish yourself in your new home.
6. You say you can fix it up yourself to meet inspection contingencies. Often, the repairs needed to meet these contingencies require the skills of licensed tradesmen. Shoddy or out-of-code work can make selling the house even harder. Even if you are able to fix up the problems yourself, the amount invested may be more than the value it adds to the selling price. Should any of the problems resurface after the sale, the buyer may come back to the seller for compensation. Listing a house ‘As is’, for a lower selling price, may be worth more in the long run.
If you can identify with one or more of these situations, it’s time to reduce the price. Your immediate concern is, of course, the reduced money you’ll have in pocket or to use for your future home. Consider a cash buyer for your house. Eliminate much of the seller’s cost and sale processing time. You can sometimes close within a week!
To find out the ideal price for a quick sale, contact: James at 240-412-2372