Friday, June 09, 2006

When you have your property for sale, it is always painful to think about reducing your asking price. It feels like you are deliberately taking money out of your own pocket.
This decision is usually accompanied by doubts about whether it is the right thing to do.
If you are not getting many showings, or a decent number of showings but no offers, you wonder if your real estate agent is not doing his or her job. Or you may wonder if the economy or interest rates are affecting the market.
Most sellers like to look elsewhere for the solution rather than seriously consider a price reduction. A review of the following factors should help you decide whether or not to consider reducing the asking price:
Showings. If you are not getting many showings, one or more factors may be involved. The local economy may be slow, adversely affecting all real estate currently for sale. Your particular price range may not be moving as well as others. Your particular location may not attract as many buyers as areas that traditionallly have greater interest. Your home may be overpriced when compared to similar houses now on the market.
Offers. You may be experiencing many showings, but no offers. The problem lies in one, two or three areas. These are price, condition and location.
If your property is located in a terrific area and has no major design or condition defects, your asking price is too high. If your area cannot sustain your asking price, you must reduce your price to bring it in line with the location.
If there is a major design flaw or the home requires improvement in its condition or decor, you can either spend money correcting the problem or reduce your price to encourage the buyer to make corrections at his or her expense.
Realtor efforts. If your Realtor has made a reasonable effort to attract potential buyers to see your home, the next move is up to you. Many times homeowners blame a lack of showings and or offers on the Realtor. Sometimes this may be justified. It is also important for the homeowner to provide a property that is attractive and reasonably priced.

The above is copy of an article from the KC Star from September of 1991. Still works for me today. Ruth