{"id":9029,"date":"2019-02-22T12:57:49","date_gmt":"2019-02-22T20:57:49","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=9029"},"modified":"2024-05-30T10:36:10","modified_gmt":"2024-05-30T17:36:10","slug":"home-listing-price","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/home-listing-price\/","title":{"rendered":"6 Clear Signs that Your Home Listing Price Is Off the Mark (And What to Do About It)"},"content":{"rendered":"

Pricing your house for sale<\/a> is no easy task\u2014and when you want to shoot for the stars for a home you\u2019ve loved, it\u2019s tough to admit that your asking price might be turning buyers away. Shouldn\u2019t you ask for a bit more, to leave breathing room for negotiation<\/a>? What about being competitive with other homes in your area?<\/p>\n

Total existing-home sales nationwide decreased 6.4%<\/a> from November to December 2018, and dropped 10.3% when compared with December 2017, according to the National Association of Realtors (NAR). In times when there are fewer sales and analysts point to an overall real estate chill<\/a>, it\u2019s doubly important to entice buyers both with a home\u2019s remarkable features<\/a> and a price they\u2019ll reasonably pay.<\/p>\n

Knowing what\u2019s on the line, don\u2019t dilly dally over how to tell whether your home listing price is off the mark. Let\u2019s get straight to the point and then dive into some actionable tips to adjust the price with your agent\u2019s help. When in doubt, envision your end game: a \u201cSold\u201d sign in the yard displayed with pride.<\/p>\n

\"A<\/a>
Source: (Jose Soriano\/ Unsplash)<\/figcaption><\/figure>\n

Sign #1: Showing traffic is below two to four visitors per week<\/h2>\n

If it\u2019s been more than two months since your home went on the market and no one\u2019s dropping by, that\u2019s one sign that your home listing price might be off, said top-selling real estate agent Todd Schroth,\u00a0who has 19 years of experience in the real estate business and serves the Orlando, Florida<\/a>\u00a0area.<\/p>\n

\u201cYou should be getting anywhere from two to four showings a week,\u201d he said. Although that does slow down after the first few weeks, having no showings and no offers is one indicator that your home is overpriced.<\/p>\n

Sign #2: You have lots of traffic but no offers<\/h2>\n

Depending on when potential buyers see your listing, showings can wax and wane. \u201cI\u2019ve had a house on the market for two weeks, a bunch of showings, nothing for a week, and then all of a sudden on a Friday, I\u2019ve got four people who want to see the house on one day. It\u2019s just timing,\u201d Schroth said. But if all those visitors don\u2019t result in any interest, that\u2019s another clue that your price is in the wrong ballpark.<\/p>\n

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Source: (Photo by Sarah Pflug<\/a> from Burst<\/a>)<\/figcaption><\/figure>\n

Sign #3: You\u2019ve received offers but you keep getting lowballed<\/h2>\n

Real estate values are highly local and can vary even from neighborhood to neighborhood based on factors like proximity to shops and restaurants or location on a quiet or busy street. From a bird\u2019s-eye view, a median existing-home price<\/a> for all housing types in December 2018 was $253,600, up 2.9% from a year ago, NAR statistics show. (\u201cExisting homes\u201d include single-family homes, townhomes, condominiums, and co-ops.)<\/p>\n

It\u2019s common to leave some negotiating room<\/a> by asking for slightly more than you expect, but this is typically 5% to 10% above the value determined by looking at comparable properties<\/a> and usually only works in a seller\u2019s market<\/a>.<\/p>\n

Naturally, prices in your area will vary, but if you\u2019re getting offers that are all way below what you\u2019re asking, you\u2019re overpriced, Schroth said.<\/p>\n

Sign #4: Your days on market keep creeping up<\/h2>\n

Pricing your home too high can result in a lower selling price over time because your house has been on the market longer<\/a>.<\/p>\n

The NAR notes that 39% of the homes sold<\/a> in December 2018 were on the market for less than a month. Properties typically stayed on the market for 46 days<\/a> in December 2018, up from 40 days a year earlier, the NAR said.<\/p>\n

Let\u2019s say your agent suggested listing your home at $350,000, but you wanted to start at $375,000. After three months with no offers, you\u2019ve agreed to reduce to $350,000, but you\u2019ll be lucky to get that much. \u201cWhen you sit on the market longer, you\u2019re going to end up with a lower asking price,\u201d Schroth said. \u201cBuyers are going to want to pay a lower price because [the property] is considered stagnant.\u201d<\/p>\n

Sign #5: You went with the agent who priced your home the highest<\/h2>\n

It\u2019s smart to compare the pricing strategies among several real estate agents and see what type of range your house falls in. Experienced agents will be able put together a comparative market analysis<\/a> for you that takes into account the price point of recently sold properties in your area that are similar to yours in square footage, number of beds and baths, and condition\u2014and then add or subtract based on nuanced factors like upgrades or positioning on a hill.<\/p>\n

An agent who prices your home the highest might be \u201ctrying to buy the listing,\u201d so that your home will ultimately sell for less because it spends a longer time on the market, Schroth said. \u201cThey\u2019re going to work you down through the process\u201d instead of pricing your home accurately.<\/p>\n

\u201cWhen you sit on the market longer, you’re going to end up with a lower asking price,\u201d he said.<\/p>\n

\"A<\/a>
Source: (rawmn\/ Shutterstock)<\/figcaption><\/figure>\n

Sign #6: Neighboring homes are priced differently and in visibly better condition<\/h2>\n

Although it\u2019s tempting to look at what other homes in your area have sold for, understand that you\u2019re likely not comparing apples to apples with a layman\u2019s eye.<\/p>\n

\u201cThat\u2019s just a very common thing that happens: \u2018My neighbor sold for just over $400,000, so I should get $425,000 because the market is going up,\u2019\u201d Schroth said.<\/p>\n

\u201cWe have to sit down and show them why their neighbor sold for more. Maybe they had a new roof; your roof is 15 years old. Or they had a new air conditioning system; yours is 10 years old. They repainted inside and out. Things like that.\u201d<\/p><\/blockquote>\n

You also can\u2019t base a comparison dollar for dollar on square footage, because one home may have a better location within the community, or the floor plans may vary, he added. \u201cDoes it have a third bathroom? Is the kitchen open? Not open?\u201d<\/p>\n

What to do next if you realize you overshot the list price<\/h2>\n

If you\u2019re ready to reset your asking price, there are several ways for you and your real estate agent to proceed.<\/p>\n

Option 1: Turn a price reduction into a marketing opportunity.<\/h3>\n

For starters, many agents call a reduction a \u201cprice improvement,\u201d which sounds more positive.<\/p>\n

Schroth said each time he changes something on his regional multiple listing service, or MLS, the property appears fresh on the MLS, Zillow, Realtor.com, and other portals.<\/p>\n

He\u2019ll also schedule a new open house with the price improvement as an enticement. \u201cWe can say, \u2018Come check out this listing. \u2026 The sellers were motivated,\u201d he said. \u201cOtherwise, you\u2019re just sitting in a house that\u2019s had no changes.\u201d<\/p>\n

Option 2: Make sure your house isn\u2019t cut off in the home search price filters.<\/h3>\n

Also check with your agent to make sure that your home\u2019s price falls into the proper price bracket for online searches. Although lots of us like to shop \u201con the nines\u201d when buying items for our homes (the idea of paying less at $34.99 than at $35), Schroth said home buyers tend to search in rounded numbers.<\/p>\n

People tend not to type in, say, \u201c$374,999 to $399,999\u201d as their price range but \u201c$375,000 to $400,000,\u201d so it\u2019s to set your home price accordingly.<\/p>\n

Option 3: Give buyers their money\u2019s worth.<\/h3>\n

Deferred maintenance can be an issue with setting an asking price, especially with homes built in the 1970s and 1980s. Schroth said he\u2019ll suggest some general updates and repairs, but some sellers don\u2019t heed that advice.<\/p>\n

\u201cThen the inspector comes in, does their inspection, and the buyer walks away because the seller wouldn\u2019t fix something. It\u2019s a $7,000 or $8,000 mistake,\u201d he said. \u201cWe can reduce the price, or we can take care of the issue that\u2019s going to come up on the next deal.\u201d<\/p>\n

\"A<\/a>
Source: (Startup Stock Photos)<\/figcaption><\/figure>\n

Option 4: Undercut the price to try and drive a bidding war.<\/h3>\n

Your real estate agent also can undercut the price to drive a bidding war, similar to when you list a popular item on eBay at a lower price to draw in buyers, knowing that more eyes makes for competition.<\/p>\n

For instance, if a community has three- and four-bedroom homes with two baths, but one has been updated and has a swimming pool, that\u2019s the hot property. You want to price just below market so you can drive the price up.<\/p>\n

Deciding whether to adjust your home listing price can be difficult\u2014and emotional, too, depending on your financial situation and how many years you feel you\u2019ve invested in your home. But taking the time for that tough decision now can save you from losing money with the wrong asking price.<\/p>\n

Article Image\u00a0Source: (Monkey Business Images\/ Shutterstock)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Knowing what\u2019s on the line, don\u2019t dilly dally over how to tell whether your home listing price is off the mark: here\u2019s how to take a hint from the market and respond proactively.<\/p>\n","protected":false},"author":76,"featured_media":9042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[322,344],"tags":[],"class_list":["post-9029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics","category-price"],"acf":[],"yoast_head":"\n6 Clear Signs that Your Home Listing Price Is Off the Mark<\/title>\n<meta name=\"description\" content=\"Knowing what\u2019s on the line, don\u2019t dilly dally over how to tell whether your home listing price is off the mark: take a hint from the market and respond.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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