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Metro Phoenix Real Estate News

Your Metro Phoenix Area Real Estate Specialist - Jose Dias

By Jose Dias | Agent in Phoenix, AZ
  • Q&A About Pricing Strategies - Starting high and reducing the price over time.

    Posted Under: General Area in Phoenix, Home Selling in Phoenix, Property Q&A in Phoenix  |  June 22, 2011 3:38 AM  |  2,524 views  |  4 comments

    Question asked during a listing presentation when we were discussing pricing strategy:

    QuestionWhat about the idea of starting high and reducing the price if it doesn’t sell? Wouldn’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 “this seller has reduced the price so many times… what assurance do I have that the current price is a good one. It may still be overpriced.” or “Maybe I should wait for the next price reduction before I submit an offer…”.

    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.
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