How Much to Adjust Your Price if Your Home is Not Selling
Pricing a home correctly is one of the most important components to getting a home sold! Even the most realistic home sellers and best real estate agents sometimes overprice a home. When this happens there is no need to panic you just have to work together to figure out what an appropriate adjustment would be.
Since 2005 we have sold thousands of homes. In addition to selling homes we have also been collecting data on everything you can think of related to selling a home. A big part of our data collection has been about price adjustments. Back around 2007 we began following this Target Pricing Formula below and we have found it to be extremely accurate. The formula is based on activity:
Target Pricing Formula
As you can see, if the price is accurate: bull’s eye—an offer will be made on your home! With a typical home sale this should happen within the first 30 days of being on the market.
If your home is:
|Getting Showings, But No Offers||Then the Price probably needs to be adjusted 3-5%|
|Getting Drive-ups and Low Showings||Then the Price probably needs to be adjusted is 6-11%|
|Getting Drive-bys Only||Then the Price probably needs to be adjusted by at least 12+%|
Again, there are exceptions to these suggested adjusted amounts and each case can vary but this bull’s eye is a great framework to go by.