How much should you drop your home’s price?
You’ve taken the plunge. You’ve decided to move, and you’ve listed your home for sale. As a matter of fact, you listed it three weeks ago, and now you’re wondering if you’ve priced your most prized possession a bit too high because you still don’t have any offers. You’ve made the decision to lower your price, but how do you know how much to lower it? You want to lower enough to make a splash, but not so much that you left money on the table.
There are so many factors that help answer this question. And it’s worth noting there’s no fool-proof formula. This is a discussion you should have with your realtor, but there are some simple rules of thumb that can help guide the conversation.
How much you should lower your price depends on two main factors: your price range and how many showings you’ve had.
- If your home is priced up to $350k, try dropping your price in $10k increments.
- If your home is priced $350k – $500k, a good number to drop your price by is $15k to $20k increments.
- If your home is priced $500k – $1million, you’ll likely need increments of $25k increments to draw attention.
- If your home is priced $1mil – $2mil, try no less than $50k increments.
- If your home is priced $2mil+, start with $250k increments.
Take this information into consideration in conjunction with the amount of showings you’ve seen.
- If you’ve had a lot of showings but no offers, you could be 4-6% off of the price the market is willing to bear.
- If you’ve had a few showings but wish you had more, you could be 5-10% off the final sale price.
- No showings and no offers likely means you’re 10% or more off of the final price.