Is it time for a price reduction?

Posted

“Improved Price”

“Reduced Price”

“New Price”

However you say it, you’re lowering the price on your listing. Maybe you started too high because the seller had unrealistic expectations. Maybe your market is taking a seasonal downturn. Or maybe inventory has increased two-fold and buyers are taking their sweet time with the options they have. Whatever the case, your listing isn’t selling and your clients are looking at you for a revised strategy. Should you or shouldn’t you reduce the price? Here are a few things to help you decide:

  • average days on market for your comps that have gone Pending or Sold – this will help you set expectations for when an offer may come in
  • of the Active listings, are you relatively less expensive or more expensive in comparison?
  • what are your client’s goals? Are they trying to avoid paying two mortgages by a certain date or do they time to have their home sit?
  • of the homes that were listed around the same time as yours, have they gone pending? What’s their story?

Then schedule a sit down meeting with your clients. As agents, we look at these numbers every day, our clients do not. To understand the best course of action, it is best to lay everything out in person.  If you’re really struggling with the format of this meeting, check out these 4 steps from the Agents Inner Circle. 

At the end of the day, our job is to market our listings and ultimately sell them. A course correction for the initial strategy shows your clients you’re an active agent who watches the market and adjusts accordingly. Don’t be lazy. Look at the numbers and have that tough conversation with your clients. They’ll thank you for it when the offer (finally) comes in.

As always, I love Portland. And I’m here and happy to help.

Erin, Realtor