What is the Purpose of a Price Reduction?
To be effective, any reduction in price has to accomplish one of two things. Otherwise, you may literally be wasting money!
- Does the new price may your house more attractive to people already looking within your specific market? If there are 10 houses similar to yours, does a lower price make someone want to see yours earlier in the "shopping stage" or make yours more appealing as compared to others? For example, if your current price is $259,900, what is the next lower-priced house? A reduction should have a strategy!
- Does the new price "introduce"/ "expose" your house to an entirely new group of prospective Buyers who may not otherwise even know your house is available for purchase? Using the example above, what impact does reducing to $250,000 have as far as attracting new Buyers?
Obviously you need to know your market: these are REAL dollar$. That being said, you should be able to discuss strategy and make (or not make) an informed decision BEFORE giving up your hard-earned money. Simply dropping the price, especially if the real issue is about marketing, may not change anything!