subject: How to estimate the market value of your home [print this page] How will you know if the price is correct?
Second looks from buyers is the best affirmation of correct pricing. This indicates that your home appeals to buyers in your price range. There may be a few nibbles before a buyer comes forward who is ready to act. It helps to get feedback from showings. However, keep in mind that buyers and agents are often reluctant to say something negative. Look at the overall result of all showings for confirmation of the price . If you are getting lukewarm responses, this will require a strategy of price reductions.
How long should you market a home at a given price?
There is no standard time frame for marketing at a given price. About 8-10 showings is a reasonable number to get a sense of the market response. This usually corresponds to about 2 - 6 weeks for an average home in a balanced market. About 30 days marketing time is a reasonable price test. However, this may be too short for an unusual or very high end home, for which there is a small market. Or, 30 days may be too long for your home if you need to move fast, and there is plenty of activity.
What if your home does not sell in a reasonable time?
If your home has been on the market for months with no offers, this is a clear message that the price is set too high. What you do at this point depends on whether you really need to sell. If you're not really motivated to move soon, you could wait for the market to move up to your price. It would be best to take your home off the market and wait for better conditions. Buyers are suspicious of a house that has been for sale for a long time. If you need to sell, consider a schedule for dropping your price until it reaches a level that attracts buyers. At the right price, you home will sell.
