Selling your home is difficult at the best of times, but in recent years it has become more difficult. Volatile markets, poor economies and higher than average levels of unemployment have all followed the global economic crisis of 2008.
Houses prices have dropped, started to climb, and then dropped again, although experts predict the bottom is near and prices will start to rise again by the end of this year.
Of course, this makes it hard to estimate the exact value of your home. The most common approach is to set a price and be prepared to negotiate and reduce, if necessary.
But, before you drop the price of your home, make sure you ask the following questions:
Everyone wants a sale instantly but before you drop the price to get it, ask yourself how long have you been on the market.
A simple guide is if 3 months pass without a single viewing, drop the price.
Take a look at the marketing for your property. Are photos high-quality? Does the listing really sell the house and the surrounding area?
If there is room for improvement in these areas then you need to do that before you drop the price.
Viewings Without Offers
A sure sign that your house is over-priced is when you’ve had plenty of viewings but no one is making an offer.
The only question is how much do you drop it by?
Take a few moments to check out a reputable Sydney auctioneer to find out what they would list your house for. It may be that this is an option you’d like to consider to get a quick sale. It can also be that the price is massively different from yours, that’s a sign you need to drop your own price.
Before you drop your price take a look at the photos of your home. Simply changing these can make your home seem more attractive and worth the price. It’s worth trying before you drop!
Number of Properties For Sale
It’s essential that you look at the number of properties for sale in your area. The greater the number the harder it will be to sell your house as there is a lot of competition.
If you need a sale and there is a lot of competition, you’re going to have to drop the price.
Price of Competitors
It’s also worth looking at the prices of competitors houses. To sell you need to be in the same price bracket or less. Of course, if the other houses in the area are much smaller then this is not so relevant.
It’s worth speaking to your real estate agent to confirm this.
If you’ve been lucky enough to get an offer but have the sale fall apart during the appraisal process then you may find the appraisal price is much lower than the listed price.
To complete a sale you’re going to have to get closer to the appraisal price.
Speed of Market
In recent years the housing market has been slow if this is currently the case in your area then dropping the price may not make any difference.
You’re just going to have to play the waiting game.
Price Already Lowered?
Finally, if you’ve already lowered your price once or twice then you may have a real issue on your hands. It could just mean your house was overpriced in the first place but many buyers will see it as a sign that something is wrong with the house.
Dropping your price again in this situation is not going to help!