My seller called me about reducing the price on one of his properties.  I believe the home, which is new construction, is currently priced properly.   I get good traffic through it but haven't received an offer yet.

I told my seller to hold his price as long as he could.  My problem with reducing the price is that's where the buyers start.  They then proceed to drop the price from there.  The list price is the bar that most buyers want to be way under when they make their offers.

Somewhere along the line, buyers have been told or have experienced the fact that there are properties that can be obtained at bargain prices.  I can't argue with them because it's true.  The problem is not all properties fall into that category and not all sellers are willing to "give them away".

Not everyone is upside down or in foreclosure.  I had a person call me on one of my new constructions that has been on the market for about a year and asked if it's a short sale or bank owned.  My response was neither.  A few years ago, no one would have even thought to ask that question.

Now that we are getting closer to spring, I'm trying to get my seller to raise his prices instead of lower them.   I'm not talking a major increase but a percent or two probably wouldn't hurt.   Eventually new construction will become more and more scare.

As the $7,500 federal tax credit program starts to unwind this summer, I think more and more first time home buyers will be motivated to buy a home.  I'm counting on them buying one of mine.

Take care.