Special offer

Have you thought of a price reduction?

By
Real Estate Agent with Weichert Realtors

Have you thought of a price reduction?

Kevin Monahan -- REALTOR

Have you thought about doing a price reduction? Eight words no agent wants to mutter and no seller wants to hear, but to stay competitive in today's housing market it's a must. I've had home owners who have done price reductions every couple weeks and others that never do any, I don't really need to tell you who's home I had more action on. Everything is falling out there, some days the sky is even falling. If your home is the one with the falling price then it will see the type of action you need to see an offer.

Lets look at one unnamed neighborhood in the northern half of Connecticut. Three homes are listed in this neighborhood right now all comparable in size and shape, some have two full baths others have one full and one half. Two of them are three bedroom homes the other is a two bedroom, and their prices tend to reflect this. At 174,000 there is a two bedroom one car garage home with 1230 square feet, a modest 189,900 will acquire a three bedroom two car garage home with 1380 square feet. At the very top of the market for 204,000 a beautiful colonial, three bedroom, one car garage with 1380 square feet. The over priced home in this example is obviously the 204,000 dollar home simply because your asking fifteen thousand more than any other home in the neighborhood. A price reduction to a nice 188,000 would be perfect, the thousand dollar difference would give the overpriced home the edge because people are looking for the better deal. Now if our home values are 189,900, 188,000 and 174,000 we see that both the completely comparable homes are at the same price point and the two bedroom is respectably lower.

Do this test on your neighborhood to find out where your home ranks. Ask your self if your home needs a price reduction because of your competition or just to increase traffic. The main thing is YOUR HOME IS NOT WORTH WHAT IT WAS IN 2005. Your selling lower and your buying lower so the market is the same for everyone, if you sold your house in 2005 you would have paid the inflated price for the one you purchased as well.

 Kevin Monahan

Realtor

cell: 860.377.7665    email:kmonahan@weichert.com

 

Weichert Realtors -- Suburban Properties

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

We invite you back to ActiveRain in 2016!

    Much has changed since your last visit to ActiveRain.  We encourage you to take another look at the website. 

    Surf some blogs, leave some comments. 

     Post a Blog!

              Best to you!

Apr 18, 2016 01:03 PM