As prices start to cool off and the market shifts to a buyers market, which is where it is headed, make sure you don't get left out in the cold and miss the mark. Sellers often ask me, “How do I know if my home is overpriced?”
Actually, there is a simple way to test this. Looking at the number of showings you’re having each week is a good way to gauge whether your listing is reasonably priced. With this in mind, the ideal number of weekly showings your home should see will depend on your price point.
"Reduced listings tend to see a higher level of exposure."
Homes at and below the $450,000 mark, for example, should have between three to four showings each week.
However, the amount of time a home spends on the market will also indicate how fairly it’s been priced. If a home sits on the market for more than three weeks, the number of showings it sees will likely taper off.
If you’ve had between 10 to 15 showings but no offers, you should reduce your price by 3% to 5%. If you’ve had one or two showings each week, but haven’t seen any offers, you may need to reduce your price by about 10%. And, finally, if you’re seeing a complete lack of showings, your home is probably overpriced by between 10% to 20%.
No one likes to lower their price, but not doing so when necessary could be a major mistake. When buyers see a home has sat on the market for a while, they will tend to wonder if something is wrong with it. Reduced listings, on the other hand, tend to see a higher level of exposure.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.