When a home for sale is on the market for a while, the listing agent may confer with the owner and decide to lower the asking price. Doing so can be an effective way to generate renewed interest in the home, as well as help it to sell quickly. However, reducing the price isn't the only change that may be appropriate to make to this dollar figure. In some cases, it can be advantageous to increase the home's listing price. Unlike lowering the price, your agent won't advertise that the price has been changed, but you may soon find yourself entertaining an offer from an interested buyer. Here are some times to think about increasing your listing price.
There Are Fewer Choices In The Neighborhood
When several similar homes are for sale in the same neighborhood, one approach is to lower your listing price to make your home stand out. However, if the other homes sell before yours, you may have a good reason to increase the price. Your real estate agent understands trends in the city, and may feel that your neighborhood is a coveted choice for many buyers. With fewer homes saturating the market, you may be able to elevate your price — and sell it soon at that higher figure.
Local Developments Have Been Announced
In many cases, outside factors can influence the price that you ask for your home. If there has been some relevant news announced since you put the home on the market, your real estate agent may advocate increasing the price. For example, the announcement of large retail space in the area can often make your neighborhood more desirable to buyers. Likewise, if a large corporation has decided to relocate to the area, employees may be relocating, too. These situations can increase the demand for houses, which can help you get a higher purchase price.
You've Completed A Project
Sometimes, if your home hasn't sold for a period of time, you may opt to follow your agent's advice and renovate a room or complete a project that makes the home more desirable. If you've done so, whether it's an upgraded kitchen, a new set of windows in the bedrooms, or the installation of central air, the home will be worth more money. Your agent can then evaluate the market price of the changes that you've made, and increase the asking price of your home accordingly.
Talk to your real estate agent when making this decision.
Share29 November 2016
After I decided to buy a new home, I realized that I probably needed to prioritize the things on my wish list. Since I am not wealthy, I realized that I probably couldn't get everything that I wanted out of a single home--at least, not this time around. Fortunately, I worked with an incredible real estate agent who helped me to figure out which type of property would pay off in the end. Finding a home took a lot of time, but I am really pleased that I found the right one. This blog is all about learning to prioritize your home hunting wish list so that you can have the home and financial situation of your dreams.
