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When you are looking to sell a property, one of the most difficult things you will have to do is determine an asking price. In today’s market property values are rising rapidly, making it very tempting to list your property at a higher price. However, there is such thing as too high.
Even prices that appear fair from your perspective may be considered too high for people to buy. Many people who list their properties higher than they should find that ideal properties, which should sell very easily, remain sitting on the market with few to zero offers being made.
While there are other factors that can contribute to a house remaining on the market, sometimes the asking price is simply wrong. So, here are key signs that it is time to lower your asking price.
However, before we dive in, it is important to remember that when you are making an asking price, your buyers will most likely need to secure financing. That means if you over-list and the appraisal comes up short while a buyer is trying to secure financing, you might not be able to sell the property. To learn more about how over-listing can eliminate your ability to secure financing, click the link below to book a free strategy call today.
Plenty of Showings – No Buyers
You would think that with a high number of people coming to view your property, it should sell in no time at all. However, despite your property seeing such a high demand, you are not getting any offers. This may be a sign that you are asking for too much.
Many people treat the asking price on a property as a ‘starting bid’ and are unlikely to try to offer below that. So, if your price is too high, you will find that the high demand for showings will quickly turn into silence for offers. With a lower asking price, people are likely to make offers and potentially bid higher than your intended asking price because they have the illusion of a deal.
Buyers Are Telling You the Asking Price is Too High
Feedback from prospective buyers can be essential. Especially if your property is not selling. Some people will simply comment on the state of the house, the amount of space or the neighbourhood. However, if they are telling you the property is too expensive it may be time to listen.
There will always be people who consider a property too expensive, but if this is a piece of feedback you are receiving constantly, it is time to consider lowering the price. Especially if you cannot get anyone to put an offer down on the property.
Comparable Houses are Selling for Less
This is a fairly simple sign to see. If comparable properties are consistently selling at lower prices, you are asking for too much. Look around at other properties being sold in your area and in similar neighbourhoods that are being sold. If those properties have nearly the same amenities, square footage and are in a similar condition, then the prices they are selling for are going to be a solid indication of what the properties are worth.
As yourself, if you were looking to buy a house and saw two comparable listings but one was more expensive, would you buy the more expensive house to receive the same benefits? You most likely would not.
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Nicer Houses Are Selling at the Same Price
While you should always compare your property to similar ones when determining the price you are going to ask, you should also take a look at the properties selling around your asking price. If your two-bedroom one-storey home near the train station is listed at the same price as a four-bedroom house in a nicer neighbourhood, you may want to reconsider your prices.
If other homes are selling at your asking price that is a good sign. There are people out there willing to pay the price you want for a home. However, if those houses are noticeably higher quality or have more/better amenities, that is not a great sign for you. Afterall, buyers want to get the most bang for their buck.
Your Agent Has Suggested It
Your realtor is meant to be your guide and trusted professional while you are looking to buy or sell a home. They do not want you to fail. So, if your realtor is telling you that your property is listed outside of the recommended range, you may want to take that advice to heart. After all, realtors know the market well and have enough experience to know what the public is willing to buy and how much they are willing to spend on it.
Consider the following, when you first listed the property for sale, did your realtor suggest that price or did they potentially advise you to go lower. While people were viewing your property and then walking away, did they suggest that lowering your price may get you the offers you are looking for?
If they are actively advising you to go lower and you are not listening you may want to reconsider working with them. Or else, you need to take the advice of the professional you hired to help you and let them help you.
While you may want your property to sell at a certain price, there will not always be buyers willing to pay the asking price. However, none of this means you need to undervalue your property to make a sale. By doing the proper research into the market and local real estate trends you can determine exactly what your asking price should be for when listing a property for sale. As well, you do not have to determine this by yourself. Do not be afraid to ask your realtor for their professional opinion and advice. Their job is to help you sell the property and they are going to do whatever it takes to make sure the sale happens.
If you are selling a property with the intent to buy something new or are simply in the market to invest in more real estate, book at time with our team at LendCity to discuss financing options for your next real estate deal. For more information you can contact us at LendCity.ca or give us a call at 519-960-0370. Alternatively, click the link below to book a free strategy call with our team at LendCity.