3 Reasons Why Sellers Drop the Price
When an agent suggests a price drop, it is not a bad thing. There are simply different aspects to look at from both the buying and selling standpoint. Here are the top three reasons a price drop is encouraged.
3. Home is overpriced
Even with every attempt to price a property correctly, it’s inevitable that some will be overpriced. This most often happens when a home is purchased at the height of the market and then due to economic downturn does not retain value. This is one of the most difficult conversations to have with sellers. Oftentimes, there is nothing that either party can do; an agent cannot sell a house that will never appraise for the selling price, nor can a seller eat the difference of the remainder of their mortgage. If this is the case and there is an impasse, then it may not be the right time to sell. Barring that is not the situation; a price drop is in order. Sometimes even a small one can have a great impact. A listing has to be price appropriately for what has sold and is selling in the area.
2. The house needs to sell fast!
Particularly in Savannah, a large portion of the population is transient. Savannah’s military populations at Hunter Army Airfield and Fort Stewart alone approximate over 50,000 active military and their family. Aside from the military, Savannah is also home to many four-year universities and major employers like Gulfstream, Mitsubishi and JCB. Routinely these individuals are relocated throughout the country and overseas, sometimes with little notice and their need to sell their home can be urgent. In these instances, a home might not be overpriced, but the homeowner simply can’t wait for the right buyer to come along.
1. Get better exposure
The number one reason to drop the price of a home is exposure. Not only does the house populate to all the internet sites as having its ‘Price Reduced’, but it also comes to the front of the line on agents’ MLS. This is a point of news for your listing with which your agent can advertise to other agents and makes the home more attractive as having a seller ready to sell.