How can you instantly lose thousands of dollars? Lowering the price of your home. Everyone knows it’s pretty rare that you actually get what you listed your house for. So, when you pick a price it’s usually a little above what you actually want to get for your house knowing full well someone is going to offer less.
That means if you lower the price of your home, you are 1) For sure getting less than you wanted and 2) instantly are losing thousands of dollars. Lowering the price of your home is a difficult decision and there are a lot of factors at play. The biggest factor is how long your house has been on the market. The second biggest factor is whether your house is listed at market price.
Our realtor wanted us to lower the price on our house after 2 weeks on the market. While that might work for some people, we were already for sure going to lose money on our home – the question was how much. Because of that, lowering the price was an even bigger decision than normal. We did some research online to see when people “typically” lower the price on their home, but there was not typical. It ranged from 2 weeks to 8 months. We felt like lowering after 2 weeks was just too soon. So, we decided that we’d wait until it had been on the market 1 month and then likely lower it then.
We felt like lowering price, while it would bring in new buyers from lower tiers of home prices, would be counter intuitive because those buyers would offer even less bringing us even less money. For example, if someone was looking for a home under $200,000 and we lowered our price from $210k to $199k then the home would now be in their list – but would still be at the very top of their budget, so they’d likely come in low at $185k. Which was WAY less than we needed and wanted for this house. We just hoped that waiting a few more weeks would pay off. Check back tomorrow to see if it did 🙂
Photo Credit: The Three Sisters