5 Things to Consider When Dropping Your Price

When a house won’t sell, the answer is often to drop the price, but how much and when? Here are a few things to consider when dropping your price.

1-A seller should always consider pricing the home correctly when first bringing it to market. The most activity on a home is when the home first hits the market.
2-Always consider lowering the price sooner not later while the home is still fresh in the Buyer's minds.
3-If there has been no offer in one to two months, ­ six at the most ­ consider dropping the price, then re-evaluate every two to four weeks. [One rule of thumb has always been if the home is priced right, for every 10 showings, one should expect to see an offer.]
4-When you drop the price, lower it by enough to make the home the top house in a lower price range rather than the bottom house in a higher range.
5-The more expensive the house, the greater the decrease needs to be to attract new buyers.
Source: Newsday, Abigail W. Leonard (01/19/07)