Price reductions are commonplace in today’s real estate market. Many days, they actually outnumber the number of closed sales & new pending sales.
Price reductions happen because the seller or real estate agent overestimated the market value of the property in the beginning and the buyers reject it. Dropping the price is not necessarily a bad thing, it happens. But, the key reason to drop the price is to spark some interest, generate some activity, and hopefully, an offer.
Many times though the seller only drops the price a small amount, not enough to make a big difference. This is what most people call “chasing the market down”.
Here are some thoughts I have about reducing the asking price of a property.
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Pricing A Property In Big Bear – Follow Your Real Estate Gut
What’s More Important, Asking Price or Sales Incentives?
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January 20th, 2009 at 4:54 pm
Agreed.
January 20th, 2009 at 1:05 pm
The best way to avoid a price reduction is to get it priced right the first time.
Aloha,
Keahi