When Is It Time to Reduce the Price on Your Washington DC House, or Condo?

We all dread it…When it comes to the property we are trying to sell, the words “Price Reduction” sound like pure evil.  Nobody wants to hear about lowering prices except a potential buyer. In slower markets and buyer’s markets, it common for sellers to point fingers at the agents and agents to point fingers at seller’s unrealistic expectations for a price. Sellers say, “Why don’t do you do more to sell my house?” and sellers have every right to ask their agent that very important question.

 

However, Before Considering Reducing the Price, look over these:

  1. How many hits has your listing received in MLS?
  2. Do the marketing comments sell the benefits and features?
  3. Has there been a direct mail campaign launched? If so, what kind?
  4. How many open houses have there been?
  5. How many private showings has there been?
  6. Does the house show well online, lots of pictures? Quality of pictures?
  7. Do you have a virtual tour online?
  8. What kind of feedback have you received from other agents and buyers?
  9. Are you offering enough compensation to selling agents?
  10. Are you offering any incentives to the potential buyer?

 

  • Are You Selling in a Buyer’s Market and Have Little Motivation to Sell?
  1. Do you 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. You might be better off renting your house or staying put until the market rebounds..especially if you’re not motivated to sell your Washington DC house or Condo.
If the seller does not conform to the marketplace…That person ceases being a seller and becomes a dreamer. Don’t be a dreamer when trying to sell your Washington DC house or condo, be a realistic seller

Choosing the Right Price for Selling Your Washington DC House

If you’re too high, you’ll need to continually reduce the price until you hit that “right” number, and by then buyers will begin wondering:

  1. What is wrong with your house?
  2. Why has it been on the market so long?
  3. How much lower will you go?

Ideally, you want one and only one price reduction. Here are guidelines to consider:

Realize your agent is not the enemy but is on your side; its best if you two work hand in hand and are on the same page.

  • Pull up pending sales and examine the history. Examine how many days that property had been on the 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.
  • Compare sold prices with active listings. Are sold prices higher?
  • Pull the history on active listings to determine how many days on market before the prices were reduced. Ignore active listings without price reductions.
  • Run side-by-side comparisons 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’re really determined and motivated, price it less than anything else on the market.

 

Is Your Price Too Low?

 

  • Even in distressed markets, as home prices slide into downward spirals, properties that are priced below what buyers are readily willing and without prodding to pay will receive multiple offers.
  • It’s common to have price wars among buyers who are competing, which will then result in an accepted offer for more than list price.

 

If the Price is Right…Your House Will Sell!

If you do not want to go through the hassle of finding an agent, listing your property and then waiting for an offer, contact Swing Real Estate, LLC. We Buy Houses in Washington DC and We Buy Houses Fast! We will work around your schedule and close when its convenient for you! Visit Swing Real Estate here or call us at 202-888-0560!

About Sir Ashley Harrison

Sir Ashley Harrison is a full-time real estate investor and non-practicing attorney. He does deals throughout the country.

, ,

No comments yet.

Leave a Reply