Friday, December 14, 2007

Price Reductions: Naughty or Nice?

Good article in DMN today. My good friend and fellow Realtor, Lydia Player, gets it right in the article with this quote, "You don't need to wait around for six months to decide if your price is right," said Dallas agent Lydia Player. "If we don't get an offer in the first few weeks, we need a price reduction."

People that stick with the same price for 6 months are asking for trouble and an even lower sales price. Do you really think a buyer that knows your home has been on the market for over 200 days is willing to pay you what you're asking? Think about that. So if your house has been on the market for 3 weeks and 15 agents have shown the property but no offers, guess what? The market is telling you your house is overpriced. Yes, we know you added a pool and a Viking range and faux finished the dining room but again, the market is telling you your home is not priced correctly for the current market. And 3 things affect value. Price, Condition and Location. If your home is in a good location and in good condition then that leaves...the price.

And don't blame your agent for asking to reduce the price. They are doing their job by communicating what the market is saying about your home. That is the sign of a good agent to have the cojones to call you up and say, "We missed the mark on price and now we need to make an adjustment." I could end this by using Dr. Phil's "It's time to get real" mantra. So I won't. But you should!

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