Stealth Price Cut

What does it mean when a listing agent puts out the word — on MLS or just verbally — that their Seller “will consider all offers?”

Here is a rough translation: a) the Seller knows that the current asking price is high; b) but for perceived negotiating leverage, they don’t want to reduce it; so . . . c) please feel free to make an offer well under the asking price.

Surprise, surprise . . . many prospective Buyers go ahead and do exactly that.

Which is why I’m not such a big fan of the strategy.

Rather than elicit offers as much as 25% below their current asking price, Sellers are usually better advised to do a smaller, incremental price cut; test that in the market for a period of time; then assess and repeat as necessary.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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