Before dropping your price, assess current inventory and market trends to stay competitive and attract more buyers.
Sellers hesitate to lower their price because an appraiser gave them a specific value, a neighbor sold at a higher price, or they have invested heavily in improvements. Deciding whether a price cut is needed requires a close look at the data and understanding how the market is moving. Here’s everything you need to consider:
1. Examine the inventory. The first step is to examine inventory. In the Wasatch Front, active listings are up about 30% compared to last year. In some areas, inventory is up 70%. This means more options for buyers and more competition for sellers. The market today is not the same as it was a year ago, so both sides need to adjust expectations.
“The goal is not to accept every offer but to create enough adjustment to secure the right one.”
2. Look at average days on market. Average days on market are also up nearly 50%. Homes are not sitting because they cannot sell, but because prices are not keeping up with market conditions. The longer a property sits, the weaker its position becomes in the eyes of buyers. Time on market reduces perceived value and makes negotiation harder. The goal should be to price in a way that creates enough interest to generate multiple offers.
I saw this myself on a property I renovated. I expected it to sell for $475,000 after six months of work, but feedback from buyers made it clear the price was too high. By adjusting quickly, the home sold in less than the average 53 days. Renovations were appreciated, but they did not justify the price in that location. The feedback I received gave me the reality check I needed.
3. Evaluate the competition. A home may receive positive reactions from buyers, but if another property nearby offers more square footage or land for a lower price, the buyer will likely choose that property. Looking at comparable homes side by side provides clarity. Sellers should re-evaluate the market every 30 to 45 days.
If an adjustment is necessary, the size matters. A small cut, such as $10,000 on a $1 million home, is unlikely to generate interest. Any change should be significant enough to stand out and attract buyers. The goal is not to accept every offer but to create enough adjustment to secure the right one.
There is also a perspective to consider: The market you sell in is the market you buy in. If you wait for prices to rise, the home you want to purchase will also likely increase in value. Unless you move to a different market, you will sell and buy under the same conditions. You cannot time the market, so base your decision on today’s data.
Step back and evaluate. If you are hesitant about a price adjustment, step back and assess the numbers. Look at the inventory, consider buyer feedback, and compare your property against the competition. Making timely, informed decisions is ultimately the key. If you need help understanding the market or evaluating competition, reach out. You can call me at 801-285-0521 or send me an email at Justin@JustinUdy.com. I’m here to help you navigate this market.
