One of the biggest worries most people have when they list their home for sale is finding the right listing price for your home. Too high and you scare off the right buyer, too low and you’re not getting a fair price for your property. If you think you’ve gone too high on your list price, how do you tell when to lower the listing price?
Has your home been listed longer than a week?
If your home has been on the market longer than a week it is 50% less likely to receive an offer for list price or higher. If your home has been on the market longer than a week it might be time to reevaluate your list price and consider lowering it. While this is far from a hard and fast rule, if your home hasn’t had much of any interest over the course of the first week it has been listed it might be worth reevaluating with your realtor whether or not your listing price is too high.
Your home had a lower appraisal
One of the biggest and last hurdles that can trip up a home sale is when the appraisal comes in lower then the sale price. Most mortgage lenders won’t approve of a loan that comes in over the appraised price of the home. The two most common solutions in this situation are to either have the borrower make up the difference in cash, or have the seller come down in price. Most borrowers are either unable or unwilling to be able to cover that difference in cash, so a low home appraisal is a good sign it’s time to change your list price.
If the comps in your neighborhood are lower
One of the first things you should do when you’re deciding on the list price for your home is to run a bunch of comparisons of other homes in your neighborhood, either ones currently on the market or ones that have recently sold. If you’re still keeping track of the comps after your home has gone on the market and you notice a large discrepancy between the homes that are selling and the price you have on your home, seriously consider lowering the price.
Once your home sells
Any time you buy a home in Georgia it is required by law that there is a licensed real estate attorney present at closing. It’s important to contact them in the right time frame as well! If you’re taking steps to close on your house in the next 30-60 days, that is the ideal time to reach out and choose your Georgia real estate attorney. Any less time than that and you’re not going to get the quality of service that you and your home deserve! If this sounds like your time frame don’t hesitate to give us a call! At Frank B. Pallotta Law we are licensed Real Estate Lawyers with 20 years of experience helping our clients in Georgia navigate the closing process. Reach out to us with your questions. We’re here to help.