Is a one-time price reduction better than many smaller reductions?

[CHFtalk2016]

As the market changes, so can the value of your home. In a buyer's market, as we sometimes see, home prices may continue to drop... not great if you're selling! If you first listed three or more months ago, and the market price in your area is continuously going down, you may need to adjust your price accordingly.

If your For Sale by Owner [FSBO] house was priced too high in the first place, you may decide to slowly reduce the price in stages, and after several reductions, finally reach the comparable market value.

The problem with continually reducing the price is that buyers start to wonder:

• What is wrong with the house?
• How much lower will the FSBO seller go?

For this reason, a one-time reduction is always better than many smaller reductions. If the market conditions have changed, price may indeed be the reason for lack of interest in your house. But if the market is fairly stable, you may want to check out your marketing system.

Here are some marketing tips to look out for:

• How many published ads have you run?
• Are your ads well-written or do they contain too much or not enough information?
• How many open houses have you held?
• How does your online ad look?
• Do you have enough pictures?
• Have you tried using flyers or feature sheets?
• Are your signs in place to direct traffic to your home?
• Is the contact number for appointments clear?
• Are you making yourself available for all appointments?
• Are you polite and courteous on the phone?

All homes will sell for the right price. But if you feel that your price as a For Sale By Owner [FSBO] is at solid market value, then advertising and promotion may need to be stepped up and revised in order to attract the right buyer to your door.

 

[RE123RE]

Hi,
Another option is simply not to sell.
What's in your don'ts?
Thanks

 

[Thomas Beyer]

FSBOs don't work unless price is substantially below market in normal or buyers' markets, like AB today.

FSBOs work well ONLY in hot markets with multiple offer situations, like in MetroVan today.