The Dreaded Price Reduction Conversation
Karen, your post this morning is about something that we are face in this business. So many times sellers want to "test" the market. Or, say something like "well buyers will offer less anyway" It is always best to have the initial conversation upfront and a plan if the market changes during the course of the listing period and I think that it is important when "repositioning" not to wait to long so that the property does not become old/stale on the market.
The Dreaded Price Reduction Conversation
We all have had to prepare for it. It is looming, inevitable. The house has been on the market for 30 days or more and there is just no activity. You remember that your agent talked about this at the listing appointment....that in 30 days, you would need to sit down and have THAT conversation.
Could it be the time of year? Could it be that you should have listened to the price your agent recommended initially? Could it be that there is more competition now than when your home entered the market?
Any of these reasons could be THE reason that your home is in need of a price reduction. I call it "repositioning your property for the current market", but it is still a price reduction. :)
Sellers often question how buyers will perceive this price change. I think that it depends on the reason for the reduction.
If you are lowering the price because you were "testing" the market and are considered overpriced, you can count on a buyer giving you an additional price reduction with an offer.
If you are lowering the price because there has recently been more competing listings added to your area, you are perceived as being ahead of the curve and a motivated seller.
If you are lowering the price due to a relocation, financial hardship including divorce or short sale, there can be concerns from a buyer whether you are able to meet the requirements to sell successfully.
Sometimes all that is needed is a neutralization....a staging of sorts to get you back on the right track to sell. Taking the comments that have been given by buyers in open house settings or possibly agent feedback from showings, now is the time to paint that purple room or put away all the Harley decorations in the living room.
The combination of the price improvement and the staging improvement, along with new updated photos and marketing of course, will refresh the listing and bring in buyers that may have overlooked the home previously.
Don't dread the conversation with your agent. The sooner that you reposition your home in the current market, the closer you will be to finding the right buyer for your home.
Call me today for a FREE in home consulation for your home and the current market. Or visit my website at www.KarenFeltman.com for more information.
Keep smiling!
Karen
photo courtesy of istockphoto.com
Karen Feltman, REALTOR®, ABR, AHS, CHMS, CNE, CRS, e-Pro, green, GRI, SRES, TRC
Skogman Realty
411 First Avenue SE, Suite 500
Cedar Rapids, Iowa 52401
Office 319-366-6427
Mobile 319-521-0701
Fax 1-888-370-3108
www.KarenFeltman.com
Licensed in the State of Iowa
© 2013 by Karen Feltman, Cedar Rapids/Iowa City Relocation Specialist
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