Drop and Give Me $10K!

We all know what a challenging market this has been and continues to be. Pricing is important, but then again it always has been. Even in a great market we still had sellers that were asking too much and buyers would pass the house by. The difference is that then there were lots more buyers so the chances were a little better.

When I  go on listing appointments something I  point out to the seller is that the number of showings or lack thereof is a clear indicator of what the buying public thinks of the list price.

If there are lots of showings and no offers, then the price is too high.
If there are no showings at all, then the price is too high.

Inevitably there are discussions about lowering the price, and the question of how much it should be lowered always comes up. Generally speaking, unless the home is high end, I would recommend 5K to 10K. Often the sellers tell me that they only want to drop it 2K and in some cases even less. The reduction does depend on the price range but let’s say your home is listed at $200K and it’s time for a price change. Logic would tell you that dropping it to $198K will simply not do much good. That’s a 1% drop in price.

Let’s say you have your eye on a new car priced at 30K and the dealer says he simply cannot go any lower. A few days later you get a call that the dealer is willing to drop the price by 1% to $29,700!! Hardly worth jumping up and down about. But let’s say that the dealer says, “I’ve looked at the numbers again and I can make this deal with you for $28,500 (and I’ll throw in some free floor mats) which  is a 5% price adjustment, it may start looking a little more attractive.

The same is true when adjusting the price on your home. If you drop your $200K price by 5% it drops it to $190K and now all the buyers that looked at it might be tempted to take a second look and you will may also attract some new buyers who passed it up because they simply thought the price was too high for the area or their price range.

If you have had showings and no offers, it is time to reduce the asking price and keep the momentum going.
If you have not had  any showings, it is time to reduce the asking price and kick start that momentum.


Information is obtained from Neohrex and is deemed reliable but not guaranteed.

Barbara Szabo, e-Pro Realtor®
RE/MAX Trinity | 7570 Chippewa Rd. | Brecksville Ohio 44141
440-263-7496 Direct

If you would like to buy or sell a home in the southern suburbs
of Cleveland, Ohio or in the surrounding communities,
please call me at 440-263-7496, or Visit My Website
for more specific information on the communities I service:
Brecksville OH Real Estate, Broadview Heights OH Real Estate, North Royalton OH Real Estate,
Independence OH Real Estate, Seven Hills OH Real Estate, Parma OH Real Estate,
Parma Heights OH Real Estate, Middleburg Heights OH Real Estate.


Properties subject to prior sale, rental, or other status changes.
About Barbara Szabo

As my FB bio says, I am happy to be alive! I have been blessed with a great husband and one daughter and they are the loves of my life!! To earn a living, I sell real estate and have been licensed since 1986. I love what I do, and in particular, I love what social media has done for my business. I use it extensively to market my seller's homes and connect with buyers.

Comments

  1. When I see a seller do a $2,000 price reduction I just shake my head. I usually tell my clients that we need to reduce the list price enough to bring in a group of people searching by price on the internet, and that often the buyers search in increments of $10,000. So reducing from $200,000 to $198,000 probably won’t have any impact, but reducing to $190,000 will capture a whole new set of buyers. Guess what? That equals 5%!

  2. Yes, in most cases the reduction has to be 5K or 10K or more, if it’s a higher priced home.

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