Price Reductions

On the days that I’m not out showing or previewing homes, I check the MLS “Hot Sheet” list several times a day to see what just came on the market, what has recently been reduced, and what has changed status to indicate that it is under contract.

I’m often amazed at the number of price changes that some homes go through prior to selling.  There was a house on the market recently that changed price every day for 7 weeks!  Not big changes – the house was “variable range priced” and started at $779,500 to $814,900.  The price changes made daily would reduce the lower range number one day, then reduce the high number next day – but only by $100!  Changing the price gets the house back on the hot sheet, so it can be an effective way to draw attention to a listing, but this is not the way to do it!

Small price reductions always reminds me of what my grandpa used to say (he was also a real estate broker.)  “You must treat price adjustments like surgery…..If you don’t need it, don’t do it, but if you do really need to amputate someone’s leg, do the whole thing at once and don’t cut off one toe at a time!”

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