Rare But Not Unheard of: The TOO FAST Price Reduction

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, I see listings that drop the price almost immediately.

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) it presumably was trashed by visiting agents (or worse, there weren’t any); whereupon 3) the listing agent and homeowner panicked and dropped the price that afternoon or Wednesday morning.

Speaking only for myself, I view such abrupt price drops as tantamount to admitting the original asking price was inflated.

Sentiment #2, about three seconds later:  how much further does the home need to drop before it’s within range of fair market value?

So, to answer the question posed above: “Yes, home sellers can drop their price too fast (or too precipitously).”

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 retreat over a hasty rout . . .

See also, ““Nurse! I Need a Price Reduction, Stat!!”.”



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