Oh my God! The price is so low! So low you you have to buy it now before someone else buys this home that has been marked down from the price it couldn’t sell at before!!!!!!!!!!!!!!!!!!!!!!!!!!!!!…!
Doesn’t that just motivate you? No, probably not. There is only one reason to give notice of a price reduction and that is on a sign in a heavily trafficked area so that people will know. Otherwise I think it is a horrible thing to do to the house and the neighbors. If I pull up a listing with Price Reduced written on it, I will think that there is more room to negotiate because I assume them to be desperate. If you pull up a listing then it must have fit your parameters. Nothing more.
And if you put Motivated Seller, you just lost $10,000 without blinking. If you are motivated, drop the price. One buyer wrote an offer on a Seller who told me specifically that she was motivated and just wanted an offer. We came in with our offer and she countered $1000 below list price. That isn’t motivated and my clients found another home that didn’t have “a crazy seller”, as they said.
More and more Sellers are agreeing with me and I have found many other agents to agree with me on this perception of those terms. They just cheapen the house. A study found that food products launched with a discounted price faired worse when the regular price was ennacted than the product that was just launched keeping it’s true price. The former was perceived to have a lower value. Using the terms “motivated seller”and “price reduction” do the same thing.
2 thoughts on “Drastic Price Change!”
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Mike,I could not agree with you more. I have resisted that tactic on homes I've listed from $185,000 to $600,000. Listing agents should counsel their clients that desperation tactics like this are worth 5 to 10% of the listing value due to desperation.As a listing agent, it's a tough call. You are there to do two things: 1) Sell the home for as much as possible; 2) As soon as possible. When both variables extend past their expected range, what are they supposed to do?
at the end of the first paragraph, I meant to say, “due to comments, both public and private (to agents only).