Factors to Consider Before Lowering the Price
Before cutting a listing’s price, agents should review marketing, market conditions, property type, demand, seller motivation and seasonality.
NEW YORK — Before deciding on a price reduction for a listing, real estate pros should evaluate several key factors.
First, ensure the property has been marketed effectively with quality photos, accurate descriptions and an optimized listing. If the home isn't showing well, consider improvements like staging or enhancing curb appeal. Also, review the seller's flexibility with showings to ensure maximum buyer interest.
Next, assess whether the market is favorable. In a buyer's market, unrealistic pricing will result in stagnation. Understanding the absorption rate can help determine whether the market conditions are leaning toward a buyer's or seller's market. It's also crucial to examine property demand. Low showings or offers indicate a need for a price adjustment.
In addition, the type of property influences the selling time. Niche properties may require more time, while more common homes should sell faster. Seller urgency and motivation are also significant. A motivated seller may be more willing to accept price changes.
Lastly, consider market seasonality. Adjusting pricing strategy based on seasonal trends can optimize sale potential. By addressing these factors, agents can guide sellers to the right decisions regarding price reductions and ensure a successful sale.
Source: HousingWire (03/24/25) Moudry, Sean
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