How Long Should You Wait To Reduce Your Home’s Price? (2024)

Get Estimate

How can I get help to price my home right?

Our experts say comps — or recently sold nearby homes with similar characteristics to yours — should be the North Star of your pricing strategy. “If you’re seeing similar properties getting into contract in your neighborhood and you’re not generating any activity, you want to start asking yourself what the problem is,” Lundquist says.

Here are a few tools to help check the comps and whether your price is in line:

Get an online home value estimate

To find out what your home might be worth, you can get a quick online estimate from an automated valuation model (AVM) tool such as HomeLight’s Home Value Estimator. Based on your answers to a few questions about your property, our tool combines your home’s last sale price with recent sales records for other properties in the same neighborhood.

Once you enter your address and fill out a short questionnaire, the platform provides a preliminary home valuation in less than two minutes. That quick estimate provides a starting point for determining your home’s value in today’s market.

Consult with a top local real estate agent

Because of their constant engagement in local markets, top real estate agents are an invaluable resource for determining price, marketing your home, and managing all aspects of a sale.

Experienced Realtors® complete a comparative market analysis (CMA), which compares the price of recently sold properties in your area with similar square footage, overall condition, and the number of bedrooms and baths.

They factor in special features such as a renovated gourmet kitchen or a lake view. They also consider a mountain of other market trends, including price per square foot for the similar homes in your area and the total supply of unsold homes.

HomeLight offers many resources to help you learn about everything that goes into a comparative market analysis and how it can help you adjust your asking price if needed.

Get an appraisal

As interest rates have risen, the pandemic-era seller’s market has cooled in many places throughout the country. Still, sellers have been slow to reconcile their expectations and pricing strategies with that reality.

In fact, a HomeLight survey found 52% of top real estate agents say the biggest challenge sellers face is the temptation to overvalue their homes. In fact, 54% of agents have recently seen buyers back out of contracts because of inflated list prices.“The best thing sellers can do is listen to their agents and listen to the market,” adds Lundquist. If the seller and their agent differ by 15% on price point, paying for a pre-listing appraisal can mediate the discussion.

“An appraisal can be a valuable tool, providing tons of additional insight,” Lundquist says. The third-party evaluation can both determine value and predict how much a buyer’s lender will underwrite.

How can you tell if my home price might be off?

It’s a good idea to periodically revisit your agent’s marketing plan to consider whether your home is being promoted properly online and if you’ve accurately assessed your home’s condition. If you’ve accounted for these factors, the problem is probably price.

“A lot of sellers are not super realistic about what they can get for their homes today,” Termine says. “When I sit down with a seller, and my comps and my data don’t match what they think they can get, we have to have a very honest conversation.”

Kauffman agrees. “The more honest you are when I’m sitting here in front of you, the more I will know how to take care of you,” he says. “That realistic perspective is key.”

That conversation will explore finding solutions to these common issues:

Your listing has exceeded the ‘days on market’ average for your area

Days on market refers to the time between when a house is listed to when it goes under contract with a buyer. Federal data shows the property listings remained on the market for a median of 43 days in May 2023, up from 30 days in May 2022 but significantly down from 74 days in January.

Solution: Days on market metrics vary by area. Check with your agent about how fast other nearby homes are selling compared to yours.

Your home value has been impacted by a change in the market

There’s some indication the Federal Reserve may not raise the interest rate in June. However, at the end of May 2023, the rate for a 30-year fixed mortgage hovered around 6.88% compared to 5.36% a year earlier.

Because a larger percentage of their monthly payment will be devoted to interest, buyers nationwide are likely to scrutinize the value and features of your home versus similar properties.

On a local level, factors such as the opening or closing of a major employer or a blue ribbon school in your neighborhood also impact prices in your area.

Solution: If the comps you used to price your home are three- to six-months old, you may need to revisit your decision using more recent or even pending sales data. Your listing agent can also reach out to the other agents as their comparable homes enter escrow to find out the sales price before the information is available publicly.

You’ve had showings but no offers

You’ve dropped everything to clean up your home and accommodate a showing request more times than you can count. But each tour ends up being fruitless, leaving you wondering what could be wrong. “If we don’t have an offer within 48 to 72 hours — and we’re getting a ton of traffic and showings — then we’ve probably missed the mark on price,” says Termine.

Solution: Rule out other potential culprits, such as a defect like a weird smell or a damaged kitchen counter that could be surprising buyers when they visit the home. As a next step, you might bring in a friend to view your house with an objective lens and provide feedback or tour neighboring listings for a fresh perspective. Doing so may provide clarity as to whether your price is accurate.

What else could be wrong with my home price?

Here are a few other pricing traps where real estate experts advise caution:

You’re looking for a unicorn buyer

It’s true pandemic-era, low interest rates spurred sky-high cash offers without contingencies and bidding wars. However, those seller-centric scenarios have largely gone the way of mask mandates and toilet paper shortages.

In some hot local markets, buyers may be willing to pay any price and agree to any terms to get the property they want. But, “you don’t want to price for those unicorns; you want to price for the market,” says Lundquist.

Ruiz advises his clients that pricing for a unicorn buyer is likely to backfire. “Too many people point to the outlier in the evaluation report — the one person, who sold for a record price — and sellers get attached to that number,” Ruiz explains.

He says that pricing strategy typically results in less foot traffic and even fewer offers in line with your expectations. Furthermore, as we’ve noted above, the longer your house sits on the market, the less likely buyers will be motivated to offer the asking price. “So by overly pricing your house — especially in a market that’s not hot — you’re setting yourself up for disaster,” Ruiz says.

You’re straddling price brackets

For decades, shoppers have affirmed the power of 99 as a pricing strategy in retail. Staying under a threshold even by one unit — paying $9.99 instead of $10 — makes consumers feel like they’re getting a deal.

However, that tactic rarely works well in real estate. Most real estate search engines use preset parameters of round numbers that range from $100,000 to $1.8 million.

Last year, the first step 47% of buyers took to find their new home was searching for properties online. Understanding the price brackets and pricing your home correctly allows your listing to pop up in the searches of the greatest number of potential buyers.

“If you price your home at $299,999, you are missing the folks who are searching in that $300,000 and up range,” Termine says. Her experience also shows that buyers explore homes within $25,000 increments. For example, they may consider homes within the $300,000 to $325,000 range.

Still convinced your home is priced correctly?

Before lowering your asking price, make sure your marketing and home presentation are hitting the mark. If you follow your agent’s advice, your home will probably be in a prime position when it hits the market.

To further enhance your chances of a sale, be certain:

1. Your home is accessible to buyers and their agents

Since a home is usually a family’s largest investment, most buyers want to get a feel for the property firsthand. They may even walk through multiple times before they make an offer.

If you have limited hours for showings or open houses, or you listed the property before it was ready to show, then lack of access could be the problem. “Access is a big deal,” says Ruiz.

Even in the seller’s market, properties with limited access due to tenants, owner health issues, pets, etc., are likely to have less foot traffic, more days on the market, and fewer offers.

“If you’re in a buyer’s market and there’s no or little access, plan for your home to sit on the market a long time,” cautions Ruiz.

2. Your home looks move-in ready

When buyers visit a home with overgrown landscaping, bizarre paint colors, or outdated features, “all they see is additional money they have to spend,” Termine says.

To get the best price and appeal to the greatest number of buyers, you should:

• Paint with neutral colors
• Replace dated and dirty carpets
• Deep clean and declutter
• Spruce up your landscaping

You might even consider making upgrades that impress buyers.

“Sellers are upgrading the kitchen, bathrooms, flooring, and paint. They understand many of today’s buyers are looking for homes that don’t need work,” reports top Chicago agent Courtney Monaco in HomeLight’s Top Agent Insights.

According to agent survey responses, the most popular upgrades that increase ROI include:

• Open concept kitchen with family room
• Kitchen island
• Energy-efficient and/or smart appliances
• Ample drawer and cabinet storage space and
• A walk-in pantry

3. Your listing includes professional photos

Many real estate agents work with professional stagers and photographers to ensure each room looks inviting online. Our experts have also compiled a list of DIY design and staging tips to help your home look its best for buyers.

“Effective marketing starts with great consumer-facing experience with an online presence featuring professional photos,” says Ruiz.

4. Your listing highlights neighborhood charm and walkability data

Your listing should be a love letter to your home — telling buyers about everything that makes it special. Be sure your description includes not only the best features of your property but nearby schools, parks, theaters, restaurants, and other attractions locals love.

5. Your listing mentions your home’s trending features

A little research into what’s trending in real estate can pay big dividends. Search home and design blogs for the hottest amenities and highlight those assets in your home.

For example, Lundquist says the pandemic prompted a rise in the popularity of larger homes and properties with patios, pools, and other outdoor living areas. A staged home office can also be a plus.

Be sure to mention these bathroom upgrades, which a recent HomeLight survey identified as being important to buyers:

• Double-sink vanity
• Modern lighting
• Rain or dual-head showers
• Vanity with extra storage and
• Soaker tubs

6. Your marketing plan targets the right buyers — particularly if you have an unconventional property

“Even the greatest marketing materials won’t reap results unless they reach the right audience — whether that’s by digital, phone, mail or other channels,” says Ruiz.

Homes with quirky features, unique layouts, or unusual locations aren’t for everyone.

For example, a split-level home might take longer to sell than a ranch-style layout in a neighborhood attractive to older buyers. But the right buyers — maybe a multi-generational family — will be thrilled to find the perfect place.

If an unusual property is priced right but not selling fast, Lundquist advises sellers to have a little patience and listen to the market. “Your unique property might just need more exposure time,” he says.

In addition, HomeLight experts have several ideas about how to make your home and your listing more attractive to buyers.

If your price is perfect, your home looks stunning, and your marketing reaches its targeted audience, showings should increase, and hopefully, offers will follow.

7. Your pricing strategy anticipates where the market is headed

“Whether it’s an inclining, declining or steady market,” says Ruiz, “ you want to have a constant awareness of not only where the market is, but where the market is headed.”

He cautions sellers to keep in mind that when looking at sales data and comparables that closed in the last 30 to 90 days, you’re actually seeing a snapshot of properties that went under contract 45 to 180 days ago. It may not reflect today’s market.

To price effectively, “You want to consider competitors’ pricing, foot traffic, consumer confidence, transactions in the last seven to 30 days, and what’s expected to happen in the market in the next six to 12 weeks,” Ruiz says.