I moved and listed my home three weeks ago. There’s been some interest, but no offers. I’m not financially strapped by keeping this house because I have a low mortgage rate. But I am going to take the proceeds of this house to pay down the principal on my new home with a mortgage rate of nearly 7%.
My real-estate agent doesn’t seem to think we need to reduce the list price yet, but I feel like if my house was priced correctly, it would have gotten an offer by now. We’ve had about 10 showings since listing.
Should I push for a price reduction? I don’t need to sell fast, but I also don’t need to maximize the price. What I really don’t want to do is screw myself or the eventual buyer over because I didn’t react to the market.
I was originally planning to sell to my friend without a broker, and walk away with $125,000, but stuff happened in his personal life and it wasn’t the right move for him anymore. I interviewed three agents, and all suggested the same list price with comps. At the current list I’ll walk away with a little over $250,000 after agent fees.
What do you think?
Want a Second Opinion
‘The Big Move’ is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage.
Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at [email protected].
Dear Second Opinion,
It comes down to whether you can afford to wait. You said you don’t need to sell fast, but you still need the money to pay for your new mortgage.
You also need to do a delicate dance with the real-estate market: the longer a home stays on the market, the less interest buyers will give it. Interest typically peaks in the first few weeks, and gradually declines. If your house languishes on the market for several months, buyers might think the home is priced too high or, worse, there’s something wrong with it.
Some experts recommend waiting for 30 days before you consider dropping the price. Doing so will show you are eager to sell at a fair price in what is a very unusual post-pandemic housing market — high interest rates and high prices, mainly due to low inventory and high demand. Give it one more week, and have a frank discussion with your realtor.
You likely already know this but even after you accept an offer on the home, it will take you at least a month to close on the home, or even longer, according to Rocket Mortgage. Can you afford to wait a month, even two, until you get access to that money?
About a third of homes are still being sold over list price, according to real-estate brokerage Redfin
RDFN,
They also spend roughly 31 days on the market. (Realtor.com says that homes in August spent an average of 48 days on the market). That means that you’re potentially looking at waiting at least two months before you get access to the proceeds of the sale.
Also, keep in mind that nationally, only 6.6% of homes listed had a price drop — which may not seem like much but it is the highest share since November 2022 when rates took off.
Your real-estate agent may have a different explanation for why they’re holding out on cutting prices. But reducing the price is a bit of a gamble at this point. Yes, you could reduce the price and get more offers, and end up selecting a buyer who’s going over asking in an ideal scenario. Or you could end up with the same “no offer” scenario and may have to go with an offer you won’t be happy with.
It all depends on whether you are in immediate need of the money. Does your current financial situation allow you to pay for the new home for 3 to 4 months? That would help you make a decision on whether you want to cut prices, sell, and move on quickly, or whether you can afford to wait for a good offer.
Bottom line: It’s concerning that you have not even received an offer below your asking price. It may be that there are other actions you can take. Do the photographs showcase your house in its best light? Does the listing accurately reflect the neighborhood, your home’s best qualities and the school district? Did you stage your house correctly? There could be other reasons your house is not receiving offers that go beyond the price.
It’s your house, your money. If you think it will sell and you are happy to accept, say, $20,000 less, the final decision should be yours.
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