Reducing the Price?
Some unsuccessful sellers try to test the water by pricing the house too high with the hopes that they find a buyer who’s willing to pay more than the house is worth. The worst mistake a seller can make is thinking that there is no harm in price reductions later on. This is a classic pitfall that could lead towards getting less for the house than it was worth to begin with.
Sometimes price reductions are necessary; especially if your house isn’t getting offers. But price reductions are a fallback strategy because they have drawbacks. Price reductions can make a buyer think one of three thoughts:
- What is wrong with this house?
- Let’s see if they lower it more.
- Let’s put it in the low-ball offer to see how low they will go.
If your house does sell after a price reduction, it could actually be much less which you would have gotten if you have listened to the market.