If you are a regular reader of my real estate blog, you keep up with the real estate statistics we update monthly for the Glendale, Pasadena, La Canada, and La Crescenta real estate markets. Well-priced homes in desirable Los Angeles suburbs continue to sell over the asking price. Are two weeks long enough before a price reduction?
Deciding whether to reduce your listing price after two weeks on the market depends on various factors. While there is no definitive answer applicable to all situations, here are some key considerations to help you make an informed decision:
Market activity: Evaluate the level of buyer interest and activity during the first two weeks. If you have had open houses and showings but no offers, it’s not a good sign. Buyers and their real estate agents ask questions when a listing is hot. The question your agent wants to hear is, “Is there an offer deadline”?
Competition: Determine if other properties in your area and price range have received offers or gone under contract. If buyers actively make offers on your competition, it suggests that your home may not be as appealing. Assess whether those houses were objectively better in terms of size, condition, location, and price.
Initial pricing: Reflect on whether your house was priced appropriately initially. If your agent recommended a lower listing price based on an analysis of relevant properties, but you chose a higher price, it might be worth considering a price reduction.
Market changes: Assess if the market conditions have shifted since you initially set the listing price. Market dynamics, such as changes in supply and demand, interest rates, or economic factors, can influence buyer behavior and impact the perceived value of your home.
Agent’s expertise: Consult your real estate agent, who deeply understands the local market and your specific circumstances. Trust their judgment and advice on when and by how much to reduce the price. They can provide insights into buyer feedback, market trends, and pricing strategies.
When determining the appropriate price reduction, there is no fixed percentage that applies universally. The goal is to capture current buyers’ attention in the market and motivate them to take action. Your agent can provide guidance based on their expertise and knowledge of the local market to ensure your price reduction aligns with market conditions.
In summary, while two weeks may seem short, it can provide valuable insights into the market’s response to your listing. If your agent suggests a price reduction after this timeframe, objectively discuss the reasons and factors influencing the recommendation. Ultimately, trust your agent’s expertise to guide you in making the best decision for your situation.
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I know so many millennials who are immediately suspicious of any house still on the market after a month or even less in our current market. They jump right to there must be something wrong with this house. So I dont think two weeks is too short a time at all for a price reduction