When should I do a price reduction?

Answer:

If your home has been on the market for over a month and no offers are on the table, it means you have been pricing your home too high.

When should I do a price reduction?

OUR ADVICE:

Drop your price between 3% and 5% every month you are on the market.

In fact, it is a mistake to make a price reduction for anything less. For example, a 1% price reduction doesn’t make sense because if the property was really worth 1% less than the original price, offers would have already been made. Don’t say “Price Reduced” in your listing or flyers. It’s like saying, “We’ve been trying to sell this house for a while for more money, but nobody wanted it.Modest price reductions also give agents the impression that the seller’s agent is only trying to trick them by making the listing appear in the MLS list of new listings and price reductions.

Real estate agents will tend to ignore a modest price reduction.

Or worse, they will sense a vulnerability with your listing and only submit low-ball offers. Also, avoid saying things like, “Seller Motivated.” Show your motivation with lower price. Now is a perfect time to take a look at the 12 Realities of Pricing a home.

By | 2015-04-14T23:30:57+00:00 April 14th, 2015|Pricing Questions|