Question asked during a listing presentation when we were discussing pricing strategy:
What about the idea of starting high and reducing the price if it doesnâ€™t sell? Wouldnâ€™t this strategy ensure we get the most money for the house?
I wish it was that simple. Home buyers perceive that
there is something wrong with houses that stay on the market longer
and/or have several price reductions during the listing period. I
actually had home buyers decide to see a property because there was a pattern of price reduction.
In addition, most home buyers feel that if the home seller has already reduced the price once they will be open to a lower offer.
There are a lot of emotions involved in the decision to buy a house. If anything the home seller needs to demonstrate to potential home buyers that they are confident the asking price is fair and in line with the current market. It is very difficult for a home buyer
to feel confident the price is fair when he sees a pattern of price
reduction. In the back of their minds, those buyers are thinking
something like â€œthis seller has reduced the price so many timesâ€¦ what
assurance do I have that the current price is a good one. It may still
be overpriced.â€ or â€œMaybe I should wait for the next price reduction
before I submit an offerâ€¦â€.
For a free Home Valuation Report in Arizona
, just go to www.MyFirstHouseAZ.com/valuation
. I will be glad to create a private Home Valuation Report
showing the market activity around your home.