I recently read a blog about price reductions. The post was basically saying that ALL price reductions are properties that were overpriced in the beginning. To a certain extent, I agree.
However, in the Myrtle Beach real estate market, things are a little different. Yeah, we do definitely have quite a few overpriced properties. But we also have a lot of investors here that are always looking to move forward to the next opportunities.
We have an investor who recently made some huge price reductions to two of his properties that we have listed. And these properties were not overpriced. They both actually had contracts on them at one point. One fell through because of financing (go figure) and the other was a contingency contract (the contingency was never met).
So I am sure some people will think that the properties were overpriced, but they weren't....not in the beginning. As the market fluctuates, adjusts, and corrects itself, price adjustments must be made as well to stay current. But, that doesn't always mean that the property was overpriced from the start. Prices have to change when the market changes, or they will become overpriced.
Price reduction may mean previously overpriced a lot of the time, but not always. Sometimes price reductions are required to adapt to a changing market.
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