No matter how the housing market is doing, there is always the potential for a price reduction. It happens! Here is how buyers and sellers can prepare for and go about making that decision.

The Current Market

Some industry reports state that the market is leaning toward listing price drops. Other reports, such as that of the National Association of Realtors, say that home prices are at all-time highs. Apparently, some markets are seeing appreciation of upwards of 2%.

Either way, price reductions are a natural part of the market that highlight the market’s movement and potential future.

What Sellers Should Know About Pricing

With price adjustments being so common, sellers can no longer rely on aggressive pricing for immediate offers.

Watch pending sales closely: These prices should guide your new listing sales more than closed sales.

Price with competition in mind: Overpricing from the jump limits the buyer pool by a lot.

Educate clients about market shifts: Show clients the most recent data on how the market may be changing. Telling them what is actually happening instead of what they want to hear builds trust.

Adjust as needed: A price reduction of 2% to 5% can generate a good amount of renewed interest.

Time reductions properly: Sellers should test the market’s reaction to the price reduction for around two weeks to gather feedback.

Buyers, Seize the Day

A home lingering on the market could mean that there is more opportunity to negotiate on price or terms on the home.

For more information about the housing market, keep up with The Connolly Agency!

Information courtesy of NAR Magazine