I requested a price reduction on a listing last week. The seller wants to know how much she should reduce the price to still be enough to generate an offer but not take unnecessary cash from her pile on the closing table. She also wants to know how I know it is time for a price reduction. Fair questions and very typical ones for every seller contemplating a price reduction.
My first response was to remind her she chose to list it at the highest dollar of the suggested listing price range I provided based upon recent sales in her neighborhood. True, her property boasts a long list of improvements and shows like a near model home, but improvements rarely return dollar for dollar. Next, we discussed the number of showings and the fact we have passed the first thirty days without so much as a nibble. Lots of compliments and kudos for terrific upgrades, but no offers.
I do not have a set formula for price reductions. I do keep a close eye on market activity in the area and monitor showings for feedback. My initial goal is neither to overprice or under-price a listing; the goal is to price it at market value. We are close but not quite on the money. Sometimes a small adjustment will move a property into the "sell zone" before staleness sets in and lowball offers emerge.
Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800
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