Buying A Home
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If you dropped your price, have some ?'s
Did you see an increase in showings/foot traffic after you dropped the price? If you feel like it led to an offer, how soon after you dropped price did that happen?
Re: If you dropped your price, have some ?'s
I'm a buyer, but this happened with the house we have an active negotiation going on with now.
We looked at the house at original list price, didn't love it enough to pay close to asking, and forgot about it. It came down 20k in price, we walked through again, and for the location and new price, it was enough to make us offer on it.
Timeline: house on market in October, taken off market in Dec. Back on in mid-Feb with 20k decrease. Our offer went in last monday.
From the buyer side here, but I think it will depend on how much you drop your price by. A small reduction ($5K or less, in my mind at least) will get you on the "hot list" of properties with price changes so you may get more traffic. It will also let anyone who previously saw the house but thought it was overpriced know that you're willing to negotiate (which could be good or bad for you).
If you drop $10K or more, I think you get traffic from buyers at the next price point down who may not have considered looking at it before. It's all relative to your market though.
How long have you been on the market? I think you should wait at least four weeks before reducing unless your agent advises you otherwise.
We've been on the market about 4 months. We have had many showings (considering listing right before the holidays, which were actually a busy time in our market) but no offers. All of our feedback is positive, not one negative thing (it's just that our showings weren't in a position to buy yet).
We are dropping $3k, but the house itself is listed under $200k and the price drop brings us in line with other comps for sale in our development (even though ours is fully updated with nicer upgrades than everything else listed for sale right now).
We sold 11 months ago. We dropped the price and got the offer the same day. But ours was a substantial drop (over 5% of price), putting us below the listed comps (and of course we thought we had the 'better' house!). Our closing price was very close to our final listing price and to the closing price on other comparable properties.
When we made the decision to drop the price, we wanted to send buyers a signal that we were willing to deal, so we took a big decrease on the listing price. It worked.
Yes, it puts our pricing in line with what other houses are listed at and what other properties have sold for (roughly) in the past 6 months.
Our neighborhood is very desirable as far as location but is older, built in 1979. To compare, one home in our neighborhood priced with exactly the same sq footage as ours and same layout, is within $1k (less) of ours but has everything original from 1979 (yellow bath fixtures, flooring, countertops, appliances). Ours has all new bath fixtures, flooring, kitchen, appliances, plus new furnace, ac, water heater, etc.
We dropped our price at 3 weeks, we were still get showings when we dropped the price, but our agent was really pushing us to drop. We are under contract to buy another house with a contingency that we sell our house first so there was pressure to sell before that contract expired. If that hadn't been the case we wouldn't have dropped the price until we got to a point where we weren't still getting showings every day.
After we dropped the price $15k the traffic picked back up again but we still didn't receive any offers. We did stop hearing complaints that there is no off street parking after that though.
I think it just has to be the right person seeing it, at least in the case of old houses. We had a signed contract to sell at 5 weeks after we went on the market, 2 weeks after we lowered the price.
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