How much to reduce home price??

**akcat** · 04-04-2011, 06:28 PM

Our condo has been on the market 3 weeks with only 3 ho-hum viewings. We are in a great location with an older dated condo.

Is it best to reduce the price while the listing is still fairly new or to give it more time?

We had determined with our agent that the price is in line with comps; however, the market is supersaturated with listings & it's a sluggish market to boot. We are in Anchorage where the economy is not being felt badly as most other places but there have not been many closings this year in our area.

We want to aggressively sell with only one large decrease in price. But how do we figure out what percentage reduction? (We have talked with our agent but he is not guiding us in this aspect)

**portland real estate** · 04-04-2011, 06:38 PM

Lowering the price will almost always help a home sell, but it is not the only factor. Does your home have the nicest staging so that it shows better than any other condo in the area? I would make sure it does before lowering the price. You may still need to lower the price, but the only way to know how much is to ask an agent who knows your local market really well or to get an appraisal.

**Greg** · 04-05-2011, 05:33 AM

There is no reason to stick with your plan for one big price reduction. Why gamble everything on one price reduction? You could end up lowering it too little or too much.

I have had success lowering prices gradually on a set time frame. Once you get to where the price needs to be the buyers will show up and then you will know you are close to the price you need to be at.

**landontreber** · 04-05-2011, 12:57 PM

In your post, it sounds like you have a high amount of listings in your market. If homes aren't selling at a pace to keep up, you could be in a declining market (prices with get lower), and would then need to price accordingly to stay ahead of the down curve. If you have seen the comps, then you should know the average length of time on the market and can decide from there what to do, or how much to reduce price. I would have to agree with the earlier response that a huge reduction is not always the answer, unless you need it gone asap. Just remember that the longer the home is on the market, the harder it will be to get it sold! Good luck...

**Zach Sikes** · 04-08-2011, 12:14 PM

Ask your Realtor to pull comps for the area.

Of the direct comps (homes most closely related to yours), the list price should be very close to the average sold price.

Of the directly comparable active listings, your home should be in the bottom half of price per foot. Most CMA's that Realtor's do should have the max price, average, and min price. You want to be below average and above minimum for a sale.

If you do not have any offers on your home in 3 weeks, then it is time to make sure your house is staged priced correctly.