Homes typically receive the most interest in their first couple of weeks on the market. So, it helps to put your best foot forward in both how you stage and market your property as well as your list price. According to Realtor.com, Tucson homes spent an average of 45 days on the market before going under contract. If you find your property sitting on the market for a while, more likely than not, you overpriced it. But how do you determine when you need a price reduction to breathe new life into a stale listing?
Time for a Price Reduction?
Oftentimes a listing calls for a price reduction if you see little to no activity within the first couple of weeks. Or you might see a decent amount of foot traffic but no offers come in. Another indication that a reduction might be necessary is if the only offer you received was drastically below your list price. However, before you make the choice to reduce your price, look over your listing photos. Are they professional? Do they show off your property in its best light? Also, listen to buyer feedback. You might need to make some changes (like repainting, replacing worn flooring, or updating the landscaping) to get the price you want. Your REALTOR® can help you there.
Price Reduction Strategies
If you decide that a price change is warranted, keep this in mind. Multiple reductions worry buyers. You may need to make a couple of reductions before you find a buyer. But no more than that. Keep a reduction to between 5% to 10% of the initial list price, depending on the current market trends and how much you overpriced it to start with. Some experts believe that it is better to make one significant change in the right direction than several smaller ones over the course of a few weeks. Talk over which strategy works best for your situation with your REALTOR® before deciding which way to go.
Rebecca Schulte, Schulte Real Estate Group, Your Source for Tucson Real Estate