How Long Should You Wait Before Reducing the Price of Your House?

In a fast-paced real estate market, pricing your home correctly from the start is critical. But what happens if your home doesn’t sell, even in a "hot" market? How long should you wait before reducing the price, and how much should you reduce it by? Let’s break it down.

Why Pricing Matters

When selling a house, especially in a competitive market, overpricing can hurt your chances of getting the best possible price. While it may be tempting to "test the waters" with a high listing price, this strategy can backfire if your home lingers on the market without offers.

When homebuyers see a house sit on the market too long, they wonder, “What’s wrong with it?  Why hasn’t it sold?”  Sometimes, they won’t even go see the property, especially if it was under contract, and then put back on the market.  

Plus when you compare the price a house sells for after being overpriced, there’s a penalty that gets paid.  Data show that it will sell for far less than if it was priced right to begin with.

In any given market, a good agent will have data for that county, for that price point about how long it takes for a house to sell.  For instance, I get reports every month that shows me the difference in sales to original list price if a property is priced right and doesn’t need a price reduction, and a house is overpriced and must be reduced to sell. 

Signs of Pricing Too High

 There is a rule of thumb that real estate agents used to let us know if we got the price wrong. 

• 10 Days, No Showings: If a house is on the market for 10 days and no one comes to see it, potential buyers think it’s overpriced, the seller is unreasonable, and they aren't even going to see the home let alone considering it.
• 10 Showings, No Offers: If there are showings, but no one makes an offer, home buyers are indicating that the house looks good enough in the pictures to go see, but when they compare that property to other houses they’re seeing, the price too high based on what they’re seeing in the property.

Are You Selling Your House? Or Helping Someone Else Sell Theirs?

Home buyers are out looking at multiple houses.  They are comparing your house with other in the same price range and seeing if your house is better or worse for the money.

If you’re not getting offers, or if you’re getting low offers, the home buyers are telling you it’s overpriced!

How Long Should You Wait Before Reducing the Price?

The timing of a price reduction depends on several factors, including:

• Market Conditions: If homes in your area are selling quickly and your home isn’t getting offers, it’s a strong sign your price is too high.
• Local Data: Work with your real estate agent to analyze hyper-local trends, including comparable sales and median days on market for homes in your price range and neighborhood.

Additionally, most homes in the Atlanta market achieve their best price or come closest to their original asking price within the first two weeks of being listed. Waiting too long to adjust the price could hurt your chances of securing the best offer.

Price Ranges and Days on Market

The number of days a home typically spends on the market can vary depending on its price range:

• Modest Neighborhoods: Homes in lower price points often sell faster and may need quicker adjustments if overpriced.
• Higher-Priced Homes: Homes in higher price points tend to stay on the market longer, so you may have more flexibility before considering a price reduction.

For example, in Alpharetta, Georgia:

• A modest neighborhood might have homes selling within days of being listed.
• Higher-priced homes in nearby neighborhoods could take several weeks to sell.

This is why having a local expert who understands your specific market is invaluable.

How Much Should You Reduce the Price?

When it’s time to reduce your home’s price, avoid small, incremental adjustments like $100, $500, or even $1,000. These minor reductions rarely attract new buyers or make your listing stand out.  If anything, it signals to homebuyers that you’re unreasonable.

Consider:

• Reducing the price by approximately 3% of the current list price, or
• Your agent can use market data to determine the most strategic adjustment to make your home competitive.

Attract a New Group of Buyers

Also, consider does the reduction you’re considering bring attention to a new group of buyers. 

For instance, say you have a house that’s been on the market for $500,000, and it appears to be overpriced based on the lack of showings or showings with no offers.

A 3% reduction on a house price would take it down to $485,000. 

However, when home buyers give their agent search criteria, they typically search in numbers divisible by $25,000. 

If you reduce to $485,000, you’re going to miss those people who are looking UP TO $475,000.  You’re missing getting a new segment of buyers if you price at $485,000. 

You may be thinking, but my house is worth more than $475,000.  Maybe be so.  If that is the case, buyers will know, they’re the ones looking at your competition. 

If buyers think your house is worth more, they will drive the price higher. 

Go Look at the Competition

One of the things I do for clients is go see the competition.  And I encourage home sellers to come with me so they can see what the competition looks like too.  Try to approach pricing your home through the eyes of home buyers looking at all the houses in the same price range. 

Are you pricing to sell your house? Or are you pricing to help sell the competition?

Why Timing and Pricing Are Critical

Delaying a price reduction can cost you in the long run. Data shows that the longer a house stays on the market, the lower the final sale price tends to be compared to the original list price. Acting quickly and decisively after gathering feedback from the market can help you avoid this downward spiral.

For Sale by Owner? Consider the Drawbacks

If you’re trying to sell your home on your own, you might not be getting the exposure you need to reach the right buyers. According to the National Association of Realtors, 88% of homebuyers work with a real estate agent. Listing your home with an experienced agent can help ensure maximum visibility, accurate pricing, and a faster sale.

Final Thoughts

Pricing a home is both an art and a science. It requires a balance of market data, local expertise, continuous monitoring of the market, and an understanding of buyer behavior. If you overprice your home and it doesn’t sell, consider these key takeaways:

• Monitor your listing’s performance and be ready to act within the first two weeks.
• Consult with your real estate agent about when and how much to adjust the price.
• A meaningful price reduction—typically around 3%—is more likely to attract attention and generate offers.  But also consider pricing to reach a new group of buyers.

Even in a hot market, the right strategy can make all the difference.

Need Help Selling Your Home?

If you’re considering the selling your home in the metro Atlanta area, I’d love to help.

Call or text me, Kelly Vandever, at 770-597-1108 and allow me to make your move easier.

Kelly Vandever
Real Estate Agent, Keller Williams North Atlanta