It can be a frustrating decision...when is the right time to drop the price on your Denver area home?
Some people like to go purely by the numbers... I have heard Real Estate agents say that if the home has been on the market for 1 month, then it is time to drop the price. I have heard others say their rule is 20 showings with no offers, then a lower price is needed.
I think that you have to look at every case individually. I like to pull a CMA (Comparative Market Analysis) on my listings each week to get a feel for what the hyper-local area is doing... Have new listings appeared in the neighborhood? Has anything gone Under Contract or Sold? These are definitely factors that have to be considered if you are going to lower the price of your home.
Another appropriate time to drop the price is probably if you get a couple of offers at around the same price point, but lower than your list price. If you are listed at $400,000 and you receive 3 offers that will not go higher than $380,000...it might be good to take a hard look at your price and decide if it is worth lingering on the market for that higher price.
Time on the market can cost you, both in value and in holding costs, as well as the negative perception of increased Days on Market -- the longer a listing lingers on the market, doubts start to build in both Buyers' and Buyer's Agents' minds...they start to think that something must be wrong with the property, or it must be priced too high...or that you must be getting desperate, which can lead to a low-ball offer.
Selling your Denver Area home can also be confusing, as the market is not the same as is being reported on a national level -- nor is it the same from city to city, or even from neighborhood to neighborhood.Every situation is also different...if you are selling your home to relocate for a job opportunity, if you just want to move to a bigger house a few blocks over, or if you have already found your dream home and put in an offer -- there are various levels of motivation, and in the end it is up to you, as the homeowner, to decide what is best for you and your own situation.
Read more:Pricing your Denver Area Home Right
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