“If 35 to 40 potential buyers have toured your home without making an offer, it’s time to seriously think about adjusting the price,” advises New York City real estate agent Brad Malow. In other words, consider a price reduction.

It is Rare to Undervalue a Home

When contemplating a price cut, remember that the market often makes that decision for you.

“It’s nearly impossible to underprice a home, as the market will typically drive the price back up,” says Mike King, an agent with the Partners Trust Realty in Brentwood, CA.

Consider it like eBay: you might list an item for $1, knowing it is worth around $250. Over time, bidding can push the price to $275 or more. It is more advantageous to slightly underprice your home rather than overprice it; this strategy attracts more offers, creating a competitive atmosphere.

“It’s about leveraging power,” explains King. “If I’m a motivated buyer and there are only three offers, I won’t be as aggressive as if there were ten.”

In real estate, if your home has been on the market for an extended period without serious interest, it may be wise to consider lowering the listing price. Some experts recommend making a price adjustment within two weeks of listing, especially if inventory is limited, while others suggest waiting two to four weeks.

Signs It May Be Time to Lower Your Price:

• Few Showings: If your home has not been shown much, a price reduction may be necessary.
• Negative Feedback: If buyers are consistently providing unfavorable feedback, it is time to rethink the price.
• No Offers: A lack of offers after a reasonable time could indicate the need for a price adjustment.
• Online Views but No Offers: High online viewership without offers may suggest that the price is too high.
• Open House Attendance Without Results: Good attendance at open houses but no offers could mean it is time to lower the price.

When considering a price reduction, look at your local housing market. Evaluate the average number of days homes stay on the market in your area and consider getting a comparative market analysis (CMA) to understand recent sales of comparable properties.

Assess your market conditions. There’s no one-size-fits-all timeline for price adjustments, but Malow emphasizes three key points to consider:

1. How are comparable properties performing? Are they selling quickly or lingering? What were their closing prices?
2. What is the average market time for homes in your neighborhood? If your home has not reached that duration, it may be too soon to reduce the price. Conversely, if you are beyond that time, it might be time to lower your price or even consider delisting.
3. How many homes in your area have had price reductions, and what was the outcome? Did those reductions help sell the properties, and what were the final sale prices?
   
   
   Source: Realtor.com

CONSUMER GUIDE:
OFFERS OF COMPENSATION
Provided by the National Association of REALTORS®
As a home seller, you have a wide range of choices when deciding how to market your property.
This includes whether you’d like to offer—or authorize your agent to offer—compensation to a buyer’s agent as a way to attract potential buyers. Here’s what you need to know as you consider your options related to offering compensation:
What is an offer of compensation and why make one? An offer of compensation is when you— the seller—or your agent compensate another agent for bringing a buyer to successfully close the transaction. Offers of compensation help reduce out-of-pocket costs for prospective buyers, which in turn may bring more potential buyers for the transaction. These costs can be especially significant for first-time buyers, lower- to middle-income buyers, or those from underserved communities.
Are offers of compensation mandatory? No. It is up to you to determine if making an offer of compensation is the best approach for selling your property. Agents who are REALTORSÒ are here to help answer your questions and guide you to make a decision that works for you.
As a seller, does my agent need my permission to offer compensation to a buyer’s agent? Yes.
Your agent can only offer compensation or make a payment to a buyer’s agent if they have your written approval and signoff on the amount.
What types of compensation can I offer? There are many options available to you as a seller to discuss with your agent. These could include a flat fee paid directly to the buyer’s agent or allowing your agent to share a part of their compensation with the buyer’s agent. Beyond compensation, you could also consider offering a buyer certain concessions, such as covering closing costs, to make the total home purchase more affordable for them.
How will a buyer’s agent know if there is an offer of compensation? Offers of compensation can be advertised in many ways. If you approve an offer of compensation, it can be shared through common marketing methods such as flyers, signs, brokerage websites, social media posts, or simply through a phone call or email. Offers of compensation cannot be listed on Multiple Listing Services (MLSs), online platforms that compile home listings from many different sources.
Do I have to advertise an offer of compensation if I decide to make one? No, it’s up to you to decide. Advertising can help get the word out to bring more buyers to the table, but you can also choose not to advertise and instead negotiate the offer in a purchase agreement.
You mention concessions—what does that mean? A seller concession is different than an offer of compensation. It is when a seller covers certain costs associated with purchasing a home for the buyer. Concessions can make home ownership more accessible for buyers by reducing upfront expenses. These can cover things like some transaction costs or property repairs.
How do I know what option is best for me? When you work with an agent who is a REALTOR®, you are working with a professional guided by ethical duties under the REALTOR® Code of Ethics, including the pledge to protect and promote the interests of their clients. Your agent will work with you to weigh your options, answer questions, and develop a strategy you are confident in.
You can read more about REALTORS’® duty to put client interests above their own here.
Please visit https://www.nar.realtor/the-facts for more information and resources, and consult your real estate professional or attorney for details about state law where you are buying or selling a home.
#narsettlementexplained #NAR #buyercompensation #homesellers #homebuyers

“The internet can be a tool, but it is not a replacement for the essential services agents who are Realtors provide. A real estate transaction is not a simple click and purchase, like buyer a plane ticket online,” Wright said. “Most Americans choose to use a real estate professional when buying or selling a home not because they’re required to, but because of the help that one provides in navigating the challenges that are part of the process of buying or selling a home.” NAR interim CEO Nykia Wright

The material and information contained on this website is for general information purposes only. You should not rely upon the material or information on the blog as a basis for making any business, legal or any other decisions.