Recently I had to reduce the list price on a very nicely located home in VB. It had received lots of showings and had a couple offers. So, why the reduction? Well, in this case, our motivation was to receive more competitive offers. The home is in an area that is very sought after and the prices are quite high, so in order to cast a wider net of interested parties, we lowered the asking price.

         Often, when buyers are searching, they will set perimeters around the price. For instance, a buyer might search homes from $275k-$300k. If your home is priced at $305, they will never see it. Even though over 15-30 years, that extra $5,000 isn’t a big deal. $5,000 at 6% is only $300. Shouldn’t be a deal breaker, but if they never see your home, it is. So in our case, we are getting more foot traffic and hopefully more offers to select from.

          More offers usually means more $$$ for the sellers. So if you see a home that has recently been reduced, don’t be alarmed! It’s a common practice!