Is It Time to Lower Your Asking Price?

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Buying a home, home pricing, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, pricing strategies, pricing your home, pricing your home to sell, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, The best real estate agent in Jacksonville

We’re in the midst of a historic seller’s market, when many homes are selling quickly and above asking price.

So, if your home has been on the market for a while and hasn’t sold, you may be scratching your head and wondering what the issue is. And, in some cases, it may be that your asking price is too high.

But how, exactly, do you know when you’ve priced your home too high—and when it’s time to bring that price down?

A recent video from realtor.com outlined scenarios where you should consider lowering your asking price, including:

• You’ve had lots of showings—but no offers. If you’ve had plenty of potential buyers come and see your property—but none have made an offer—it could be a sign that your home is priced too high. (This is particularly true in today’s market, when most homes sell quickly.)
• High volume of more affordable properties on the market. If your home is listed significantly higher than other comparable properties in your area, it could deter buyers—and you may want to consider lowering your asking price to be more in line with the going rate in your neighborhood.
• New construction in your area. If there is new construction in your area that’s priced within range and/or offering incentives to buyers, it could make it harder to generate interest for your home at a high asking price.

Let’s discuss the importance of pricing your home correctly so you maximize your profit!

Kevin and Jennifer Hanley, REALTOR, SRES. Luxury

OVER 1000 HOMES SOLD!
The Hanley Home Team
Keller Williams Realty Atlantic Partners Southside
904-515-2479
HanleyHomeTeam.com

Home Pricing Truths

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don't overprice, home prices, home pricing, homes for sale in Jacksonville FL, Jennifer Hanley, Kevin Hanley, lowball pricing, pricing strategies, pricing your home, real estate, think like a buyer

The pricing conversation is always a challenge. You want top dollar for your home, and your real estate agent will, too. After all, a better commission comes from a better price. But a lot of psychology and strategy goes into home pricing, and if you don’t go in with your eyes wide open, you could end up heartily disappointed.

Here are some tough truths about home pricing. While they can vary a little depending on unique market conditions, they should all be in the back of your mind as you prepare to list.

1. Some agents will try and “buy the listing.” Sad but true: Some agents will tell you what you want for the home is accurate, even if it’s too high. Figuring they can manage disappointment and reductions down the line, the less-than-ethical agent will try and cut off the more honest competition by telling you the price you think you should get for the listing is the price you should shoot for.

2. Nobody cares what you paid for the home. No buyer in the history of real estate has ever agreed to pay more for a home because of the profit a a seller hopes to get. Yes, you may have sunk $150,000 in renovations into the basement, but the market will dictate the pricing, not what you “think is right.”

3. Lowball pricing is risky. Yes, you can generate a lot of interest by undercutting other listings on the market, but people may still attempt to negotiate. While you may stay firm on your price, you could find yourself making contract compromises you’d rather not make.

4. Precise pricing suggests you’re less wiling to negotiate. List a home for $403,750 versus $400,000 and you’re basically broadcasting a kind of inflexibility. This may or may not be part of your pricing strategy, but whatever you do, don’t do it unconsciously.

5. Seasonal timing can influence pricing. Are you the only comparable home on the market in January? You might be able to get a little more, especially if schools are good.

6. Infomercial pricing can make a difference. Have a million dollar home? Swallow your pride and try your hand in the $990K+ range. Slipping under the seven-figure mark can cast a slightly wider net for buyers.

Most homes sell within 3% of a market-savvy asking price, so go with an agent who is willing to explore the deep local conditions. Curious how much your home might be worth right now? We are happy to put together a no-obligation pricing matrix for you: Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside http://www.HanleyHomeTeam.com

The Pitfall of the Pricing Game

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financing a home, low interest rates, negotiating a great price, pricing your home, purchase price

Which do you think matters more when waiting for the right time to buy a home? Is it securing a low purchase price, or locking in a great financing rate?

Most buyers become focused on purchase price when they’re considering whether or not to buy. The question you often hear is the same: “Has the market bottomed out yet?” The idea of getting “the best deal” on a home is paramount to these price shoppers, and indeed for cash buyers, this may be the primary concern.

While negotiating a great price is an important part of the equation, the value of securing great financing terms cannot be overstated. The inherent risk in waiting for the market to hit bottom is that you’ll also miss out on the best interest rates available.

Imagine, for example, you’re waiting for homes to drop an additional X% in value. While you’re waiting, mortgage rates rise Y%. Sure, you might secure the home at a better purchase price, but what you’ll pay over the life of the loan will be significantly higher than buying when the market was more expensive (but rates were lower).

Perhaps the most punishing part of missing great financing is the net impact on your monthly payment. Even a 1% increase in your mortgage rate can end up costing as much as a brutal 10% increase in your monthly payment.

Buying a home is not like buying a nice coffee table. Price is not the sole concern. Given the complexities of price, property taxes, financing terms, and the larger tax implications of home ownership, it truly pays to consult with an agent who can help you weigh the pros and cons and help you make the right move.

We’re always happy to work with you to navigate the market, negotiate price, and put you in touch with mortgage professionals who will help you get the best rate possible. Contact us today and we can help you explore your options: Kevin and Jennifer Hanley, REALTORS 904-422-7626 http://www.HanleyHomeTeam.com or http://www.HanleyShortSales.com