Administering Financial Pain

People famously dread visiting their dentists; after all, who looks forward to having cavities filled?

Unfortunately, for home sellers whose homes are languishing on the market unsold, a visit to their Broker’s office may be more painful, at least financially.

That’s because, after 60-90 days of market time without a deal, a 3% – 5% price reduction is invariably indicated.  (See, “Nurse!  I Need a Price Reduction, Stat!“).   

That’s especially the case in Minnesota after Labor Day, when the approach of Winter adds an element of urgency to finding a Buyer. 

And no, it gives Realtors no pleasure to convey that news, even if they know that it’s in their client’s best financial interest to reduce their asking price.

P.S.:  The best time to do a price reduction? 

When Buyers (and their Realtors) are paying attention.

So, the latter half of August usually isn’t when most Realtors counsel changing the price.

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.

Leave a Reply