In Price Reductions we covered the importance of trying to price a home right from the beginning and how to know when a price reduction is needed. Now let's address why a price reduction will help a home sell and what to reduce the price to.

Why will a price reduction help the home sell? The price is an invitation to buyers to see the house. At too high of a price your home will be competing against homes that are out of its league. While at the same time the buyers that should be looking at the house are not because the price is higher than what they are looking to pay. If there are similar homes on the market in the same area at a lower price, then why would buyers bother to look at yours?

What should the price be reduced to? First a new market analysis needs to be done. Then the feedback from past showings should be reviewed. This should give a good indication of where the home should be priced. It should be priced to be the best value of all of the homes it is competing with. If the market and the feedback are not giving clear indications of how much to reduce the price, then a 2-3% reduction is generally a safe amount.

The right price for any home is a moving target. Changes in the market, competition from other homes, and recent sales all affect market value. Pricing a home correctly is a matter of interpreting all of this information and periodically reviewing it for changes.

Trumm Team - Alliance Real Estate, Omaha, NE

Your Home Sold within 120 Days or I will Buy It!