Price Reduction - A Seller's Strategic Tool

Price Reductions - Ugh!  Every homeowner shudders when the topic is raised. But a stategic price reduction can be one of the best tools in your marketing arsenal. 

You know it is time for a price reduction when..

  • You don't have any showings, or
  • You have lots of showings - but no offers.

The purpose of a marketing campaign is to get people in the door of your home.  A good marketing campaign is broad-based and targets two groups of people – the agent community and the public at large.  Both are sources of potential buyers for your home.  It takes a some time and a variety of tools for the news of your listing to spread.  So when do you lower the price of your listing?  Simple.  If nobody is walking through your front door.

If your marketing campaign is fully implemented and you are NOT seeing showings, it is time for a price reduction.

A strategic price reduction is a powerful move designed to capture the ideal buyer.  You broadcast a clear and timely message translated roughly as “I’m really serious here, folks!”  Following a price reduction, cyberspace lights up with tweets, emails, posts and custom Hot Sheet Reports – all of which focus attention on your house.

What if you have lots of showings, but no offers?  In this case, you are probably the benchmark, top-priced home in your neighborhood.  Your slightly-high price is actually helping the other guys sell their homes.  As in, "Gee, honey - this house is a real deal, especially compared with that higher-priced home over there."  Trust me, this is not the way to sell your home.

If you have lots of showings, but no offers, it is time for ANOTHER price reduction.

So be brave!  It seems counter-intuitive to many sellers, but a price reduction can actually help sell your home faster and for a better price.  Use it as the strategic tool it really is!