Price Reductions: When Is It Time To Slash Your Asking Price?

Dated: August 9 2022

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Price Reductions: When Is It Time To Slash Your Asking Price?

If you're considering selling your home in Brevard County, you've probably given some thought to your ideal sale price. Of course, not all sellers get their asking price. Many property sellers receive offers below their asking price—for reasons ranging from the buyer's inability to secure financing to the property being overpriced for the local market. So when is the right time to think about a price reduction? Keep reading to learn more about price reductions and important things Brevard County sellers should consider. 

Should Sellers Reduce Their Asking Price?

While price reductions tend to be rare in a red-hot seller's market, an increasing number of sellers have to reconsider their pricing strategy. In fact, according to Realtor.com, recent listing data shows that listing price reductions reached 14.9% in June, compared to 7.6% last year. Why is this happening? Because the real estate market is beginning to shift due to an increase in mortgage rates and an adjustment to homebuyers' borrowing power. In addition, more available inventory is now coming to market than in previous months, slightly increasing the housing supply. 

The reality is that your asking price should always reflect the current market conditions if you want a quick sale. If you price your home too high, you're likely to receive lower offers and may have to slash the price at a later date if you want to sell. 

Unfortunately, the longer a home sits on the market, the more buyers are likely to assume there is something wrong with it. Put simply, if the market rejects your asking price, you should be willing to adjust your position.

If your home is sitting on the market with little interest, it might be time to assess your pricing strategy. Alternatively, if you're getting showings but receiving negative feedback or lots of low-ball offers, you should consider lowering your asking price. Although it might seem risky, reducing your asking price can ensure that your home sells quickly and might even end up in a bidding war between buyers. 

How Much Should You Reduce Your Asking Price?

The key to reducing your home's asking price is to set it at a price that feels like great value for buyers. This can help your home capture multiple parties' interests and potentially lead to a multiple offer situation. Ultimately how much you decide to reduce your list price will depend on the current market, the condition of the home, and the original price point. As a general rule of thumb, it's better to decide on one larger price reduction, rather than several small reductions over time. This is because a larger price reduction has more chance of capturing the attention of buyers and striking up activity between multiple bidders.

If your home has been on the market for several weeks with little activity, or you're experiencing a lull in showings with no offers on the table, speak to an experienced real estate agent. Your realtor can help you determine the most competitive list price for your home without leaving money on the table. They can also advise you on the appropriate price cut to garner more interest from buyers. 

Sell Your Brevard County Home

If you'd like to find out the optimal list price for your Brevard County home, click here to receive a free evaluation today. Our professional real estate agents have closed thousands of successful home sales for Brevard County homeowners. We're committed to getting you the best price possible for your property, so you can focus on making your next move!

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