Ask Phyllis: a blog series of frequently asked real estate questions.
When is it time to drop the price?
Dear Phyllis,
My daughter has a home in San Pedro. It has only been on the market for a month. Her Realtor had an expression, “dirty thirty,” and suggested that she reduce the price as she hasn’t had any offers. I told my daughter I thought that was premature but would check with my local real estate expert. When do you think a seller should drop the price?
Alice
Dear Alice,
Thank you for the compliment! In our La Canada, La Crescenta, and Glendale neighborhoods, most homes that sell at list price or higher often sell within the first two weeks. Keep in mind once the listing is live in the multiple listing service (MLS), it feeds to Realtor.com, Zillow, Redfin, etc. Therefore, the first few weeks are critical because this is when a new listing attracts the most attention. Interest drops off after the first several weeks. However, the timing of a price drop can also depend on the current market conditions.
Deciding when to drop the price of a home is important and requires careful consideration. Generally, if a home has been on the market for a month without receiving any offers or significant interest, it might be time to regroup. What has been the feedback from her showings? If multiple potential buyers suggest that the home is overpriced, or if they point out features that don’t seem to justify the current price, these are strong indicators that a price adjustment might be wise. It’s also important for your daughter and her real estate agent to review recent sales. And new listings in her neighborhood. If homes comparable to hers are selling but hers isn’t, it may be time to lower the price. Additionally, if new listings in her area are priced lower and draw attention away from her home, she might need to reduce the price to remain competitive.
In general, in our Foothill real estate market, waiting two to four weeks before considering a price drop is a good rule of thumb, especially if there hasn’t been much interest. However, in the luxury market, waiting just two to four weeks might be considered premature.
