Is a Price-Reduction a Marketing Strategy?

Real Estate

By Forest Balderson

A price-reduction is not the only reason homes fail to sell within their contractual listing period, or "expire.” It’s been suggested to me that I could price a home too high for the first 30 days then ask the seller for a price reduction. The reason for this so-called strategy is to get the property on the market at the price the seller thinks their home is worth and then lower it to get it sold. It seems like an awful lot of work to show the seller that they were wrong about the value of their home.

It comes down to motive. This idea might not be a marketing strategy; rather, it might be a strategy for getting a listing then showing the seller that they were wrong about the value of their home. It would seem that deciding in advance that lowering the price of a property listing after the first 30 days is the plan might not be a marketing strategy; rather, it could be the reaction to a conscious decision to fail at the beginning of the most important stage in the life cycle of a property listing. After all, the first 30 days are the most important in the life stages of a listing. 

The number of showings in the first 30 days is the best gauge of the Sarasota market's reaction to the price. A listing goes stale. Buyers will soon begin to ask why no one else has bought the home, and if they even make the home a serious consideration, they will probably want it for even less than its real value.

Effective marketing involves foreseeing and understanding the trends that shape this marketplace. When your property is listed with me, its plan will be designed to achieve the results you expect from the area’s preeminent luxury real estate company. These are the elements, which will assure successful execution and sale.

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