Does dropping the price of a house make the seller look desparate?

Asked by Seller, 28403 Fri Aug 13, 2010

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Irena Kohler, Agent, Hampstead, NC
Fri Nov 28, 2014
A good question - I believe that from the point of a buyer the answer is yes. From the point of an RE agent, it makes me believe that some one did't do the home wok well and didn't price the property right from the beginning. If your RE agent comes two months after listing your home and asks for a lowering the price, I would advice to look for a different agent. Good luck.
0 votes
Mack McCoy, Agent, Seattle, WA
Sat Aug 14, 2010
Because, by looking desperate, you'd eventually get less for your home?

It's possible, but that could even work to your advantage. The first step is to get an offer, because you can't put a deal together without a buyer making a bid.

The problem with keeping your price high is that the few buyers who are out there are making bids on either better homes than yours with the same asking price, or comparable homes to yours with a lower asking price.

So in the end, you may still have to wear the scarlet letter of Desperation in order to get your home sold.

All the best,
0 votes
Charles Matt…, , Wilmington, NC
Sat Aug 14, 2010
Not in this market. Unfortunately, price reductions far outweigh price increases. If you have to sell, it is sometimes the only viable alternative.
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John Juarez, Agent, Fremont, CA
Fri Aug 13, 2010
Dropping the price of a house that is for sale says that the old, higher price did not work. It says that the seller is willing to put a new price on the house that more correctly aligns with what the market expects. Buyers will rarely overpay for a house and often will not even consider making an offer of houses that are overpriced. Sellers want the most that they can get for their houses but they are not able to get more than the buyers (the market) will pay.

If you are serious about selling consult with your real estate advisor and put a price on the house that will get the job done.
0 votes
Edith Karoli…, Agent, Winnetka, IL
Fri Aug 13, 2010
Hi Seller,
It would be great if we all, Realtors and Sellers alike could price each and every home perfectly on day one....
But there are many different conditions to consider, financial ones, time constraints, developments in the surrounding market, the economy etc. etc.

So when one first looks at comps and the Realtor discusses the most competitive pricing with the seller,
the then set price at the time was the best asking price and then several homes come on the market, similar homes or sometimes even larger or bigger lot or....... priced lower.....
Then an adjustment has to be made in order to continue to be competitive and have buyers continue to look
at your property whether in person or on the internet....

Everybody knows that a seller will try to get the most money for their beloved home, and that the buyers will try to get the best home for them for the best price.... So you should do what is right when looking at your home's condition, its current price and comparing it to what has recently sold (what was that asking price) and what is currently on the market competing with yours.... and then do the adjustment that is warranted.

Whatever it takes to get a buyer be interested and make you an offer..... that is what you need to do....
Do not think "desperate" think that you are adjusting your asking price to the market conditions at each
step....

Good luck to you...
Edith YourRealtor4Life!
Your Chicago and Northern Illinois Expert
0 votes
Erin Gora, , Wilmington, NC
Fri Aug 13, 2010
I have to agree with Tina. Lowering your price shows buyers that you are motivated, realistic and well informed - not desperate. Look at recent sold comparables to see what they have been selling for, as well as where your most relevant competition is priced. Most buyers are looking for a great deal these days, and won't buy unless they think they are getting one. If you price your house more competitvely than other similar houses, chances are the buyers will make an offer on yours first. In a time when we have far more houses on the market than we have buyers, pricing yourself ahead of your competition is important.
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Dave Griswol…, Agent, Bridgewater, NJ
Fri Aug 13, 2010
Hi Seller, In alot of cases it's not the price but how the home looks inside and out. There are so many things you can do with little or no money to increase the value of the property .. If your home is in good shape inside and out then lowering the price is usually the answer to selling it.

45days on market lower the price 90days on market lower it again

If you were priced a bit high to begin with then lowering it is the right thing to do.

Also advertising is key as always to selling property from the sign in the yard to the ads on the web and so much more!
All the Best
Dave & Lisa
Web Reference:  http://www.urhomerealty.net
0 votes
Tina Abraham, Agent, Wilmington, NC
Fri Aug 13, 2010
No, it does not! It shows that you are aggressive and smart about the real estate market. Obviously it is best to have it price correctly from the beginning. Ask you listing agent to provide you with a market analysis so when you put a new price on your home it will be the correct one so you wont have to keep dropping it. Dont chase the market, be ahead of it!
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Anna M Brocco, Agent, Williston Park, NY
Fri Aug 13, 2010
What is your agent advising--Many sellers may be overpriced, and many do lower their pricing in order to become competitive--review recently sold similar properties in the immediate area--see what the data suggests and adjust your pricing accordingly--review your marketing strategies, make sure your exposure is maximized--keep in mind that a home is worth what someone is willing to pay for it; it doesn’t matter what the seller needs or potential buyers can afford to spend, market conditions do matter--also make sure that your property shows as a property to remember--is neat, clean, clutter free and don't forget the exterior for curb appeal.
0 votes
Barrett Powe…, , Cary, NC
Fri Aug 13, 2010
Not necessarily.

However it is always best to price the property "right" to begin with. Studies have shown that when a property is priced right, it actually sells sooner and for more than when the property is overpriced and adjusted down over time.

In many local markets, the entire market has continued to fall over recent time. In those markets a price adjustment down is simply following the rest of the market and not a desperate move.
0 votes
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