Price reductions on a listing are as common as the need for killer curb appeal. Pricing residential real estate in Trinity, Fl for example is a strategy predicated on comparisons with other recent sales in the area and the condition of the home.
Some home sellers want to take the number they have in their head “out for a spin” and see if any offers surface. As negative as this sounds, best practices in this situation would dictate a price reduction schedule be invoked after a period of time on the market at the inflated price. One of the major problems with overpricing a home at the onset is that it sends a signal to potential buyers that something is wrong with the home.
Setting that bar or that price point too high will also soon make your home old news. Plenty of brand new properties are entering the market hourly, particularly from the foreclosure inventory. Your home can really get lost in the shuffle; the best time to strike is early and at the right price.
The National Association of Realtors just reported that “in October and November, when the market was feeling the effect of the tax credit, 26 percent of sellers cut their asking prices.” In addition, NAR also reported that Trulia.com just released the figures that the “prices on 19 percent of homes for sale as of March 1st have been reduced at least once, the lowest percentage in the last year.”
These statistics indicate that more sellers are pricing their homes better. They are therefore spending less time on the market and are not subjecting themselves to multiple price reductions.
Let’s face it, moving inventory faster is essential to the restoration of home values; but it also goes a long way in restoring consumer confidence and ensuring the success of the individual home owner trying to make their move.