Is Dropping the Sales Price of Your Home a Good Idea?
How many times have I heard a seller say: Well, we can always drop the sales price if it’s too high! Let’s just say I’ve heard it enough times that it makes me wonder where that sort of thing originates. Do they think they’re hawking dollar windshield washes in the traffic lanes to the U.S. Border? Home sellers sometimes harbor their own ideas about how they would like to sell a home in Sacramento . . .
Among Sacramento Realtors, every agent has an opinion. And you know what they say about opinions, right? Among professional Sacramento Realtors with experience and a track record, the latter tend to employ time-tested strategies suited to the type of real estate market at hand. I understand that it’s hard to tell the difference between a Realtor who knows what she is doing versus one who does not. There is a lot of bad advice going around, which might be where some sellers picked up the idea that it is a good idea to drop the sales price.
I talked with a seller yesterday who said he was in no rush to sell and implied that when he received an offer, he could issue a counter offer giving himself the ability to wait a week or so to respond. He might be a lawyer, I don’t recall. Most of my lawyer clients I adore, although they tend to analyze themselves to death at times. However, I do know that a buyer is unlikely to wait a week for a seller to decide whether to take an offer. A buyer is likely to hold up a finger representing an international symbol recognized worldwide.
I’m not even sure what that means: I’m in no rush to sell. I suppose it is a defense mechanism, designed to imply that the seller is nobody’s fool. Nobody is gonna take advantage of that seller, because gosh darn it, the seller is no rush to sell. The seller will just leave that home sitting on the market to rot until it is avoided by every real estate agent and buyer in town. It’s akin to saying: we can always drop the sales price.
There are many things wrong with dropping the sales price. You may as well take out a gun and shoot yourself in the foot as an attention diverter for all the harm it’s likely to do. There are ways to fix the mistake of overpricing, but dropping the sales price is not the way to do it. You can read more in this piece today about The Problems With Dropping the Sales Price. I promise you, it’s an eye opener.