Can Home Sellers Drop Their Price TOO Fast?
Admittedly, the vast majority of the time, would-be Sellers of overpriced homes wait too long to reduce their asking price.
But, something like 10% of the time when I see price drops, they occur too soon.
The usual, three-step scenario: 1) the home was on Broker Tour — open houses for Realtors, held for Twin Cities agents every Tuesday from 11 a.m. to 1 p.m.; 2) the reaction from visiting agents was underwhelming (or worse, there weren’t any visiting agents); whereupon 3) the listing agent and homeowner panicked, and dropped the price that afternoon or Wednesday morning.
Retreat vs. Rout
Speaking only for myself, I view such abrupt price drops as tantamount to admitting the original asking price was inflated.
Sentiments #2 & #3, about a second later: “how much further does the home need to drop before it’s within range of fair market value?”; and, “how fast will it get there?”
So, to answer the question above: “Yes, home sellers can drop their price too fast and/or too precipitously.”
P.S.: Much better not to overprice at all.
But, when it’s abundantly obvious that that’s the case, my considered advice would be a deliberate, incremental retreat rather than a hasty rout . . .