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When Is It Time for a Home Seller to Lower It?
Instead of the strong seller’s market we experienced in the past, our Jersey Shore real estate market seems to be nudging more towards stabilizing. A balanced market actually helps both buyers and sellers due to the ease with which it tends to be to navigate on less volatile terms. Currently, Margate is seeing more new construction properties. In fact, Margate’s inventory rose by almost double (96%) since April of this year. Ventnor’s inventory increased by 64%. However, these homes still sit on the market for a little while. We saw 14% of Margate listings recently make at least one reduction in their list price. But how do you know if/when it is time to lower your list price?

The Importance of the Right List Price
In the majority of cases, a home does not sell because it is priced too high. That is why it is so important to pay attention to your Jersey Shore REALTOR® when determining your original list price. They know the market and, more importantly, current market trends including what sells and for how much. When priced correctly, you see traffic and start to field offers within a matter of days. Price your property too high and you sit on the market for a while. The longer you sit on the market, the more likely a buyer questions the viability of your listing.

When to Lower Your List Price
First, if you see no buyers either requesting a private showing or showing up to any open houses in the first two weeks, you may need to lower your asking price. Second, you see people come through the door, but no one puts in an offer. Finally, you receive offers but they come in well below your list price. Plus, keep in mind that we tend to see inventory go up as the summer season ends (typically in August). Therefore, if you want to sell your home before more listings hit the market (and, thus, more competition for buyers’ interest), you need to make sure your list price is on point right now.

Be Careful With Price Reductions
Before you go slashing your list price to make a sale, you need to keep these things in mind. Aim for just one reduction to align with current market standards. But never do more than three. Multiple reductions reflect negatively on buyers. However, a large initial reduction may also cause a buyer to pause. Keep your reduction to around 5% but no more than 9%. But if your initial list price fell well within what the market shows it should have supported, you may want to reduce your price only slightly. Some experts believe one larger reduction works better than a few small reductions. Talk to your REALTOR® to discuss which option works best for you.

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