Define Drastic....


Define Drastic....
By Scott Rogers • February 28, 2011
SELLER: I am ready to do something drastic with the list price of my home. SCOTT: OK, it sounds like you are more motivated to sell now, and you want to be more aggressive in your pricing. We've been listed at $310k for six months now and several of your neighbors' homes have sold during that time for $280k. What did you have in mind what you said you are ready to do something drastic? SELLER: Well, I bought this house for $310k (which is why I have been trying to sell at $310k), but now I am ready to make a $15,000 sacrifice and think we should reduce the price to $295k. Hopefully you can see what is going on here... $15,000 is a lot of money to the seller (hey, it would be to me too!), so they consider the reduction of their list price to a point where it is $15,000 below what they paid for their house to be a "DRASTIC" move. That may be true --- from their perspective --- but it is not at all drastic from the market's perspective. If their neighbors' homes have recently sold for $280k, and with the presumption that their neighbors' homes are quite similar, then listing at $295k isn't very drastic. Some would argue that reducing to $280k is drastic, since the sales price would likely be some amount below that ($270k?) -- but a proposed selling price 3.6% below recent sales prices doesn't seem very drastic to me. In this scenario, I believe the list price would need to be $5,000 to $10,000 below recent sales comparables in order to be drastic. Thus, a drastic move would be reducing the list price to $270k or $275k. Circling back -- I can definitely appreciate that a reduction to $15,000 below the price that a seller paid for a house is a big deal, and a drastic move from that seller's perspective. But if we want the move to be drastic from the perspective of potential buyers (which is really all that matters) then we have to define drastic from the market's perspective. Are you ready to make a drastic move? Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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