Q: I have a house listed that I think is priced at the market. We are having a steady trickle of showings, but no offers. It is a nice size home, in a nice neighborhood, on a lovely corner lot. There is a train crossing down the street, but I don’t think that is the problem. What do I do?
A: If you are having showings, but no offers, then there is something about that property that is not working for potential buyers. When a property is not selling, it is almost ALWAYS about price. I don’t know anything about the property so I cannot give advice as to whether it is the train tracks, the neighborhood, etc.
In any case, I use a simple 21 day formula for determining if a price reduction is in order. If there are showings and perhaps an offer that did not come together, a 3% price reduction may be in order. If there are showings, but no offers, a 4% price reduction may be in order. Finally, if the property is not yielding any showings and offers, a 5% reduction may be in order.
I address possible price reductions at the listing presentation, so the seller is prepared for this discussion.