[Editor’s Note: Thanks to Edina Realty colleague Kathy Dick for her contribution to the following post.]
Wait a second — don’t Realtors try to get home sellers to reduce their price?
And don’t most home sellers stubbornly resist, no matter how compelling the Realtor’s market data (or underwhelming Buyers’ interest)?
Well . . . usually.
But there are exceptions to every rule.
In this case, I can think of three:
One. A Buyer with imminent interest is circling.
The circumstances can vary — they may have just come through an open house, had a terrific first showing with their agent, etc. — but regardless, the Buyer’s agent is signalling that there’s strong interest and that the Buyer is contemplating writing an offer.
In such a situation, most listing agents will advise their clients to sit tight and let things play out.
Two. The timing is wrong.
Just like trees falling in forests, if the market is especially slow, not many Buyers are likely to notice a price reduction.
Like near Thanksgiving, Christmas, etc.
Three. The Seller is making a precipitous, emotional decision.
While a dramatic price reduction can move a property, it can also signal desperation, and attract the wrong kind of Buyer (the kind who’ll offer 50% of whatever the new price is).
It can just as easily prompt Buyers to sit on their hands and see exactly how much lower the price is going to get before they make a move.
When Sellers are panicky, it is their Realtors’ job to slow things down, ground the conversation in cold, market data, and make sure that the client’s home is well-priced for current conditions.
But not lower.
P.S.: For those who don’t get the movie references: “Freaky Friday” and “Face/Off” both feature characters who swap identities.