Before Reducing Your Price

Thinking about price reductions, price improvements, price adjustments?  It doesn't matter what it’s called, no one wants to hear about lowering the sales price except buyers. In slow, buyer's markets it is common for DFW Home sellers to point their fingers at their DFW Real Estate agents and  say "Why didn’t you do more to sell my house?" It seems like a good question but if the seller has their home overpriced there was probably nothing they could have done to get the home sold.  With that said Sellers should ask agents this question.

Before Reducing Your Price ·        

Review Your Marketing Plan and Answer These Questions

1.    Do your ads contain too much or too little information?

2.    How many ads have been published?

3.    What kind of direct mail campaign has been imitated?

4.    How many open houses have been held?

5.    How does the house show online, many good quality pictures?

6.    Is your sign in a good location, contain a phone number and a Web site?

7.    Do you have a virtual tour online?

8.    What kind of feedback have you received from agents and buyers?

9.    Are you offering enough compensation to selling agents?

10.  Have you had any showings?·        

Are you truly serious about selling your home?

1.    Maybe you don't have to sell. When the market is slow and inventory is high, demand falls. If that's the case, maybe you should take your home off the market.

2.    It makes no sense to put an overpriced home in MLS that is not receiving any showings because it skews the numbers for market performance.

3.    If you don’t need to move right now, you might be better off renting your house or staying put until the market rebounds.

Choosing the Right Price

If your list price is to high, you'll need to continually reduce the price until you hit the right number, and by then buyers will begin wondering:

1.    What is wrong with your house?

2.    How much lower will you go? If necessary, you want only one price reduction. Consider these guidelines: ·        

Realize your is on your side; enlist their help. ·        

Pull up pending sales and examine their history. How many days on market before the price was reduced and how much of a price reduction was made? You won't know the sold price, but you can determine average price reduction percentages.  Your Realtor can provide you this information through the . ·        

Compare sold prices with active listings. Are sold prices higher or lower?         

Run a side-by-side comparison with active listings near the price point you are considering. Price yours so it falls in the bottom two to five listings or, if you are really committed to selling your home, price it less than anything else on the market. ·        

Although the DFW MLS contains much valuable information in many cases it does not contain information.

Is Your Price Too Low?·        

Even in distressed markets properties that are priced below what buyers are readily willing and without prodding to pay will receive multiple offers.        

It is common to have price wars among buyers who are competing for these low priced homes, which will then result in an accepted offer for more than list price.

Every House Will Sell!

It is a fact.  Every DFW Home will sell if it is priced properly and every home will sell for it’s true value.  The old adage is true “everything is worth what someone is willing to pay for it”