Lower the price VS offering major seller concessions??

[Dr. Jim]

Still no foot traffic in our home on the market for 2.5 months and 2 showings. (see post below).

After doing some research, I read an interesting article stating that dropping the price 10K or so barely affects the monthly payment, BUT that offering big concessions is like handing people cash. 10K towards closing, or closing costs+1 year property tax, 5 months w/no payments...etc will attract buyers more than a lower price.

So I ask you guys,....our house is listed at 339K. The market is pretty darn bad right now in Mi. Its a great house in all respects. gfxmoo (dot) com/foxwood


Would we help foot traffic by dropping to 325K? OR by offering some major seller concessions?

thanks guys!

[ScottsdaleHomes]

Good question.

Lowering your price can only help. There is a price that your property will sell at. One thing to think about is that most of my clients are set up on an automated email home search which I manually input parameters. For example, if my client is only qualified up to $329,000 dollars, they will only receive listings on the market for up to $329,000 . If your priced at $339,000 my clients won't be receiving your listing on their email home search.

Next, who decided on the price of $339,000 ? Was it you or your Realtor. When you were interviewing Realtors did you hire the one that said solely said they could get your home sold for the most money, or were other factors involved?

Has the market changed in the past 2 1/2 months since you listed your home? Maybe values have decreased. Take a thorough look at what is going on in your neighborhood now, not 3 months ago or 6 months ago. If your market is like ours, you need to be the perceived best value in the neighborhood period.

If you have only had 2 showings, my initial thought is that you are priced too high for your market. If that's not the case , how is your condition and location ? Regardless, you need to get more butts in the door so to speak. To a certain extent it's a numbers game. Do a bunch of open houses to get people in the door. In addition get open house visitors to give you feedback. What do they like, what don't they like. This is going to tell you why your home isn't selling.

Good luck with the sale.