Which is more effective: one 6% price reduction or two 3% price reductions?


Which is more effective: one 6% price reduction or two 3% price reductions?
By Scott Rogers • May 1, 2012
OK, admittedly, I don't have any data readily available to back this one up -- but in almost all cases, it seems that a quick 6% price reduction (for example) will work better than two 3% price reductions over time. For example, the quick six..... House is listed for $300K on January 1 House is reduced to to $280K on March 1 (roughly 6%) As compared to.... House is listed for $300K on January 1 House is reduced to $290K on March 1 (roughly 3%) House is reduced to $280K on May 1 (roughly 3%) Unless you think you have a great chance of selling the house after just one of the 3% price reductions, it's almost always better to make a faster, larger price reduction. This price change is more noticeable to buyers and more quickly gets you to a what will hopefully be a realistic selling point. As a further example, I have seen sellers who have knocked off $5K every other month for an entire year. Oh, how I wish they had just knocked off $30K that first month. Each of the progressive $5K reductions had very little impact -- but a quick $30K reduction would have been much more news-worthy and may have inspired a buyer to act. 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 22, 2024 (unless otherwise noted).
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