Reduce the price???

By
Real Estate Agent with Premier One Properties

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.

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Rainmaker
424,338
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Good post, Kelly. I believe the same scenario should be given to Buyers.  They too, need to have a Realtor with experience and knowledge to guide their clients to a successful closing.

It's a Good Life!

Fran Rokicki, Clubnet~Mentor

Nov 07, 2007 12:14 PM #1
Rainmaker
113,996
Perrin Cornell
Century 21 Exclusively, Wenatchee, WA - Wenatchee, WA
Broker, ABR

Good post. however, I have a comment that is a little off center but relevant to us as REALTORS. Your last comment about "For pricing advice in the Wenatchee valley, give me a call"... in bolgging you are often giving information in a sharing (for lack of a better word) way or exchanging ideas and opinions which is all great stuff! However when you ask for business (which is also ok) I think you cross the line and put yourself at risk..so to be safe i recommend those things be ended with name, company etc same as an advertisement... it is new area... I certainly do not know where the powers that be will ultimately come down... but it does seem to be a safe approach.

Glad to have a few more Wenatchee people here especially someone with your qualifications, experience and reputation... welcome!

Dec 20, 2007 11:57 PM #2
Rainmaker
233,893
Geordie Romer
Windermere Real Estate / NCW - Leavenworth, WA
Serving Leavenworth, Lake Wenatchee, and Plain
Kelly- Sometimes a price reduction moves a property to a price point that will be seen by more buyers (new buyers.) For example, a home has been on the market for 6 months at $310,000. Reducing it to $305,000 won't do anything. Putting the house at $299,000 however will get the $300,000 and under crowd to see it. Since so many are searching on the internet, putting it in the wrong price range can kill it. Imagine listing it without the garage or with 1 bathroom instead of 2!!  Sometimes a price reduction can work magic.
Dec 28, 2007 01:29 AM #3
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Rainer
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Kelly Boyle

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