My clients are full of questions. People I meet socially are full of real estate questions. Everybody has a question about real estate. Here's a good one with a simple answer.
Q: Sometimes you have a fabulous house, priced where the market statistics tell you it should be, and there is a steady trickle of showings, but no offers. If the neighborhood is good (location) and there's nothing left for the buyers to repair and the house is clean and show-ready, (conditon) is it the price?
A: There are basically three factors in the equation. When two out of three can't or don't need to be changed, you have to look at the third.
In this case it must be the price. There is a simple 21 day formula for determining if a price reduction is in order.
1. If there are showings and perhaps an offer that didn't come together, a 3% price reduction may be in order.
2. If there are showings, but no offers, a 4% price reduction may be needed.
3. Finally, if the property is not getting any showings or offers, a 5% reduction may put you in a position to get things moving, and offers coming in.
Obviously, depending on the price range, these percentages may differ, but this is a good rule of thumb. Watch the number of showings, and after 2-3 weeks, you'll have your answer.
Contact me any time with your real estate questions!