You’re probably reading this because your home isn’t selling and you’re wondering if you should reduce your listing price. Rest assured – lots of people have been in this situation and took action to fix it.

By reducing down to the right price, you’ll stop wondering why your home isn’t selling and start inspiring buyer competition. Once you have buyer competition, you’ll end up with an easier sale with less chance of negotiations falling through.

This post will help you assess whether or not it’s the right time to lower your price, and the strategies you should take to decide how much to lower the price.

Signs that it’s time to reduce your price.

There are a few telltale signs of a property that needs a price reduction.

You and your listing agent are getting tired. Your ‘For Sale’ sign is weathered. Worse yet, maybe you are celebrating your one year anniversary with your agent.

These signs and more should be telling you to lower your price. Here are the biggest signs that you should lower the price right away.

Your property has been on the market longer than similar properties.

Are properties similar to yours selling quicker? This may be a sign that a reduction in price is necessary. So if homes with similar floor plans, square footage, rooms and bathrooms are selling in or near your neighborhood, it’s probably time to reduce your price.

Your property is getting too few lookers.

Are people not showing up to look?

In most areas, we expect to see dozens of potential buyers showing interest or coming to an open house. In the hottest markets, you can expect to get a hundred more people looking at your property.

If you’re not getting lookers, it’s a pretty obvious sign of disinterest. A lower price point may reignite interest in your property and result in more guests to your Open Houses.

Your property has plenty of lookers, but few offers.

Even if your open houses pack in more people than your fire code permits, they don’t always lead to offers.

If not, it’s a sure sign that a reduction in price can get the next set of lookers to put an offer on your house.

How low should you go?

So you’ve come to terms with the fact that lowering the price of your property is the right way to go. Now it’s time to implement an effective home price reduction strategy to ensure you are choosing the right price point.

Here are a few strategies to get it right the first time:

Drop the price enough the first time.

Make the price reduction significant enough to open it up to a new market of buyers. At least 5% down from the last price is good, but 10% is better.

Whittling it down in smaller steps can be a mistake.

Buyers who have seen your property already can perceive this as a trend to exploit which gives away your negotiating power.

Small reductions create little excitement and do not attract a new set of buyers. Large reductions attract buyers who previously did not consider your home to be a viable option financially.

Listen to your real estate agent.

Always listen to your agent if she/he is a credible top agent and an expert in your location and at your price point. They should be able to give sound advice on reducing the price of your home until you hit the “sweet spot.” Don’t negotiate with your own agent! They are not the enemy – and they aren’t going to buy your house.

Ensure you understand the market.

Shift to a buyer’s mindset by doing research about your local housing market.

Searching online for recently sold homes and current listing prices is a great place to start.

Your agent should – and all top agents will – do a comparative market analysis (CMA). This factors in comparable neighborhood sales ( ‘comps’) which brings insight to the true value of your home.

Another approach is researching your property’s last sale price to extrapolate an estimate of its current value. The Federal Housing Finance Authority has an online calculator for this purpose. This is a rough estimate that does not take into consideration a number of factors, including property condition.

Avoid being in this situation altogether.

Getting your home’s price right the first time is important.

Pricing your home too high will draw out your selling experience. That makes the whole experience longer and more painful.

Be sure to choose a credible top agent. They’ll give you professional advice about properly pricing your home. If your agent is a member of TAN, they can also test the price with a pre-MLS listing.

When a property first comes on the market, it gets the most interest. If you accidentally priced your home too high, you can still get top dollar for your home. Start your price reduction strategy with the help of your agent and you’ll see new offers.

Are you ready to sell your home right the first time? Find a top agent today.