When to Reduce Your Home Sales Price

Your home's sales price is one of the most important factors in your real estate listing. If the price is right, it is going to sell pretty quickly in most cases. Sometimes, you might feel as if you need to reduce the price in order to be competitive. Here are a few things to consider about when to reduce the sales price on your home.

Home Sales Price

The sales price is typically the first thing that potential buyers look at. When they are doing a search on the multiple listing service (MLS), they are going to search for houses within a particular price range. This means that if you are above their price range, you are not even going to show up in the search. Because of this, price is going to be the driving factor in most real estate transactions.

Urgency

One time that you might consider lowering your home sales price is when you are urgently trying to sell your property. If you can afford to wait, then there is no reason for you to lower the price. Every time that you lower the price, you are essentially going to be giving up equity that you have earned in your property. The only reason that you should consider giving up part of your equity is if you need to sell immediately.

Market Factors

When you have your property listed, you want to make sure that you are in line with the rest of the market. If there are many properties out there that are very similar to yours, you want to make sure that yours is not the highest priced property. When there are multiple properties that are very similar, there is no reason for a buyer to purchase the most expensive one. Therefore, if your property is sitting on the market for months, it could be because you are priced above the rest of the market. In this case, you may want to reevaluate your sales price.

Changing the Price

When you decide that you want to change your listing price, you will need to talk to your listing agent. She will have to go through the process of changing the listing for you. She will have you sign a new contract that changes the price of the listing.

Comparative Market Analysis

When you are trying to choose the price for your listing, you should utilize a comparative market analysis. Your real estate agent should be able to provide one of these for you. This is information about recent sales in your area of comparable properties. By looking at this information, you will be able to see what the real market is for your particular property.

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