Start Making Offers Without Waiting to Sell Your Home
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
If your home has been sitting on the market without an offer and you’re considering reducing your asking price, you’re not alone. The current housing market is forcing many sellers to rethink their original list prices, with some estimates suggesting that as many as 42% of homes require a price cut to close a sale.
Additionally, CNBC reported that in June, homes sold below asking price in 38 of the nation’s 50 biggest housing markets.
But deciding how much to reduce it can be tricky. The right adjustment depends on your local market, comparable sales, competition, buyer feedback, and, of course, the condition of your home.
The calculator above can help you quickly compare different price-reduction scenarios without doing a lot of mental math. It can also help you see whether a lower price could move your listing into a new online buyer search range.
Why Isn’t Your Home Selling?
Price may be part of the problem, but it is not always the only reason a home struggles to sell. Buyers may also be reacting to the home’s condition, local competition, or features that do not match the asking price.
Your lack of showings or an acceptable offer can also be connected to poor listing photos or ineffective marketing.
Before making another pricing decision, consider the full picture. Our guides on why a home may not be selling and overlooked buyer deal-breakers can help you identify other issues that may be holding back your sale.
How Much Should You Reduce Your Home’s Price?
In a recent HomeLight survey, 2%-4% was the most common price reduction real estate agents reported recommending when a home needs a price cut. The next most common response was 5%-7%.
However, most agents agreed that 10% is usually the highest percentage they would consider. Nearly a quarter of all agents said there isn’t a standard range, and that deciding how much of a price reduction is appropriate depends on the property and the market.
The calculator provides two ways to look at your options. First, it shows what reductions from 1% to 10% would mean in dollars. It also identifies a modeled buyer search threshold that could potentially expose your listing to buyers using a lower maximum price.
A search-range opportunity may sometimes require a larger reduction than agents most commonly report recommending. That does not necessarily mean you should make that cut. Instead, consider it another pricing point to discuss with your agent.
For more context, see our latest guidance on why sellers may need to act quickly when a home sits, and common mistakes sellers make when a home is not selling.
What Should You Consider Before Cutting the Price?
Before changing your list price, look at more than the percentage alone. Useful questions include:
- What have similar nearby homes sold for recently?
- How is your home priced against competing listings?
- Have competing sellers recently reduced their prices?
- Are you getting showings but no offers, or very little showing activity?
- What feedback are buyers and agents providing?
- Has the home been on the market longer than comparable properties?
- Could condition, repairs, or presentation be affecting buyer interest?
What If a Price Reduction Doesn’t Work?
If you lower the price and buyer interest still does not improve, repeatedly cutting the price may not be the best next move.
It may be time to revisit the listing photos, marketing, property condition, or overall positioning. Depending on your circumstances and local market, you might also discuss temporarily taking the home off the market and relisting it later.
Our guide to the pros and cons of relisting a home explains what to consider before making that decision.
Talk With a Top Local Real Estate Agent
The calculator can help you compare pricing scenarios, but it can’t account for every factor that may be affecting your home sale.
An experienced local agent can review recent sales, active competition, buyer activity, and your property’s condition before recommending a new list price.
If you’ve been trying to sell by owner (FSBO) and you want the expertise of a top-rated agent, check out HomeLight’s free Agent Match platform. Most seasoned agents are willing to provide a consultation and comparative market analysis with no obligation.
For more tips on selling your home, visit HomeLight’s Seller Resource Center.