Price Reductions Will Likely Make Lots Of Sense To Some Home Sellers


Price Reductions Will Likely Make Lots Of Sense To Some Home Sellers
By Scott Rogers • October 18, 2022
Fictional Seller Sally bought her home about eight years ago for $190K. Three years ago, Sally realized her home was worth $240K and was pretty happy about that. Last year, Sally was astonished to conclude that her home was likely worth $290K. Wow! Sally just landed a new job out of state and is getting ready to sell and the most recent comparable sales indicate that her home is likely worth $310K in the current market. Sally is elated! Sally lists her home for $309,500 and has had quite a few showings during the first three weeks on the market, but has not received any offers. Would it surprise you that Sally decides to go ahead and reduce her list price to $299K? Would it surprise you if three weeks later Sally reduces the price again to $289K? It wouldn't surprise me. While some sellers might think about $299K and $289K relative to the possible current value of $310K, Sally is thinking about $299K and $289K relative to... [1] Her original purchase price of $190K. [2] Her conclusion a year ago that her home was likely worth $290K. Certainly, Sally would be delighted if she could sell her home for $310K, but she will also be very happy to sell it for $299K or $289K. Moving forward through the balance of 2022 and in 2023 I suspect there will be some sellers who will happily sell for a bit less than the market might indicate their house is worth, as that "lower" price is still much, much higher than they could have imagined their home was worth for most of the time that they have owned it. This likely won't be all sellers, and perhaps not even most sellers, so it might not cause an overall shift in home values... but some sellers will likely be quite willing to reduce their price if their home does not sell in a timely fashion. 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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