As a Realtor, my seller's look to me for pricing advice. Our market environment is flush with price reductions and incentives. Do these efforts really get through to a buyer?
This is not an easy question to answer. First let's look at how the buyer thinks. The buyer qualifies for a price range and sets out to find the best home in the range. Location, size, style, condition, and appeal are the most common criteria used to narrow down the possibilities.
Is the buyer enticed by price reductions? In my opinion, not unless the home has met the initial criteria. In other words, the buyer is NOT going to become interested in a home that does NOT meet their wants and needs simply based upon price reduction and/or incentives.
So what should a seller do that is highly motivated to move? First of all, look at the most recent comparable sales (closings) and pending sales. How do the homes compare to yours? Use the same criteria mentioned above. If you sense that you are very competitive, then price reduction may not be the answer.
In my experience, the biggest difficulty is a homeowner's ability to make an objective analysis of the market. This is where you need to lean on your professional Realtor for advice. Good Realtors know the market. Typically, the seller doesn't know the inventory of homes as well as the Realtor. The best Realtors tell the seller what they need to know, not what they want to hear!
My advice for seller's? Set an appointment with your Realtor immediately. Tell them to bring the latest market data. Put yourself in the shoes of a buyer. Be objective. Make the hard decisions.
For pricing advice in the Wenatchee valley, give me a call.