Spam prevention
Ambassador
1,410,014
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

It happens.  It depends on how unique the property may be.  The price may be correct but there may be a much smaller buyer's pool so it just might take longer, if the Sellers have the luxury of time.

When there needs to be a price adjustment, we just need to realize the market is not supporting the price.  It is a fluid thing.  Recent sales are history and you need to keep your eye on the competition, if there is any. 

Aug 13, 2015 02:31 AM
Rainmaker
289,862
Kent Simpson
Realty One Group Mountain Desert - Tucson, AZ
Real Estate Is About People

As Susan Emo noted, sometimes the price may be right on paper, but the marketplace is a very fluid & fickle arena.  A wide variety of factors can have an effect on traffic for a property...and its appeal to buyers within its competition. Perhaps the price band is saturated with available properties, maybe the curb appeal of the subject property isn't quite up to similar competing properties; could be that the neighboring properties are affecting perception of this one...the list goes on & on.

When a situation like this comes up, I have a conversation with my seller about their need to sell vs getting a certain price. When calculating an initial price point, it is important to emphasize that this is the full "retail" value, not what it will necessarily sell for. Buyers shop around - how many times have you seen something like a TV that  you want at one store & see the same or similar model for less at a competing store? Just because it is worth one price, and the store has it priced at that level doesn't mean that buyers will pay that price if available elsewhere for less...or with other incentives that increase perceived value.

Aug 13, 2015 02:59 AM
Rainmaker
1,708,235
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

We do addendums at listing that gives us automatic prices drops at intervals.

Aug 14, 2015 03:14 AM
Rainmaker
631,812
Vern Eaton
Askov, MN
Realtor 651-674-7449

I hate when that happens...I just be honest and say I wa wrong...so let's fix it.

Aug 13, 2015 12:40 PM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I  preface that with..."I believe this price to be a good current market price...but...I do not have a crystal ball and the market could be lower.

That helps pave the way to a reduction without looking so stupid in the eyes of the seller.

Aug 13, 2015 12:38 PM
Rainmaker
921,974
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Becky - First off, I never set the list price for any of my home sellers. I present information to them in order for them to make an educated decision on what price they want to list their home at.

If it doesn't sell at that price, and we are considering a drop, there are lots of things that might explain why, and I would review everything I could with the seller.

It may be that the property itself has something wrong with it; the floor plan, a specific room, color, or type of flooring, and the list could go on an on. It could also be a change in the market, or summer may be ending and all of a sudden nobody is buying due to the seasonal change. It could be the actual location or condition of the home. I could think of a ton of reasons why a home may not be selling for the initial list price.

Aug 13, 2015 12:34 PM
Rainmaker
699,177
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

YOU don't set the price the market does.  If it doesn't sell, the market is telling you something.

Aug 13, 2015 08:27 AM
Rainmaker
792,584
Tamra Lee Ulmer
Arizona Resource Realty - Payson, AZ
NRBA ~FORCE~ Over 1000 REO Assets SOLD!

Based on the Market, if it needs to be reduced, I would have a valid justification of why. It's not always what you say, it's how you say it. Be sensitive to your Client by all means, the home most likely has some sentimental value to it also, but sentiment is not for sale. Choice your words wisely, and work with them.

Aug 13, 2015 08:26 AM
Rainmaker
634,382
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

I never set the price, the owner does. Usually I make an informed recommendation backed by market data. Whenever discussing price I educate the client about the necessity to allow for well timed reductions if there is no activity or other indications that the market isn't responding at the list price.

Aug 13, 2015 07:20 AM
Rainmaker
2,684,932
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

its like anything else..we test and tweak until we arrive. Results say when

Aug 13, 2015 02:52 AM
Rainmaker
778,856
The Woodland Team of Texas
The Woodland Companies - Austin, TX
Land Specialists

Similar to what Bill does.

Nov 04, 2018 01:10 AM
Rainmaker
396,348
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

I show them comps for the area and also explain we do not know what else may come on the market, and when something currently listed sells, that price becomes a comp for their home's value.  I get buy-in from a seller based on comps and condition.  Also it is important to run current comps.  I set up my sellers on a search for comparable homes so they see for themselves what is coming the market and selling each day.

Aug 14, 2015 12:18 AM
Rainer
67,209
Evelyn M Epperson
Coldwell Banker Residential Brokerage - Johns Creek, GA
A Tradition Of [Excellence, Trust & Service]

I usually pull recent solds and state the market has dipped.  

Aug 13, 2015 11:58 PM
Rainmaker
4,247,247
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

When you choose the price of your home three things can happen:

1)  you get lots of showings and you receive an offer you can accept.  This is a good thing - a very good thing.  Yeah!

2)  you get lots of showings but there is no offer and there are competing properties receiving offers -- you may be "selling" those other properties.   What is wrong?  How can the situation be corrected? 

3)  you get no showings and obviously no offers.   We missed an opportunity.   Real estate is always changing and how do you want to proceed?

Aug 13, 2015 11:53 PM
Rainmaker
1,157,535
FN LN
Toronto, ON

I do not set the price for client listings.  The client is responsible for setting the price.  Appropriate discussions are held along with providing relevant support if a price drop is being considered.

Aug 13, 2015 05:24 PM
Ambassador
5,707,156
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Looks like you got some very good advice here Becky, including that advice from the man in the green jacket from down the road from you.

Aug 13, 2015 03:44 PM
Ambassador
3,071,942
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I do a new CMA every three weeks for listings.  It's something I've always been required to do for REO properties and private sellers like it as well.  Value has always been a moving target.

Aug 13, 2015 02:26 PM
Rainmaker
4,799,701
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Typically I'm not the one that sets the price, but do recommend one.  If it's my recommended price, I simply explain that I was a bot over optimistic facing the reality of the market feedback.

Aug 13, 2015 05:28 AM
Rainmaker
914,818
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The price is a unified decision of the informed homeowner that is the catalyst to getting the best possible response from the buying public.

Since each seller's real cause for selling differs, so does the role of pricing.

A price reduction is NEVER a surprise to the home owner but is understood as an available tool to manipulate the time line.

When the perception that a price adjustment would be beneficial, I first ask how the homeowner likes the responses, if any, they are currently getting. I work from that understanding.

Aug 13, 2015 04:59 AM
Rainer
20,554
Matthew Lawrence
ReMax Center - Round Lake, IL

If you are sure its the price, then comps are the way to start. I make the price reduction presentation as professional as my original listing presentation with all the data to support it. Sometimes the clients motivation to sell (or lack of) will have the property sit. Other market factors such as number of buyers in that area and average market time might be your issue. Best of Luck to you!

Aug 13, 2015 04:07 AM
Rainmaker
1,466,027
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Becky LaMont Comps are an indicator for what properties have recently sold. Everything from condition, supply and demand, etc. can change and impact price. Run another CMA to justify a reduction in price.

Aug 13, 2015 03:46 AM
Rainer
150,669
Ed Macias
Real Estate Teammates - Miami, FL
Miami FL-REO Property Management Multifamily

If you did your research correctly it should sell. Every market is different and times of the year sometimes dictate how soon or long you close. You would need to take those factors into consideration

Aug 13, 2015 03:08 AM
Rainmaker
627,358
Martin Kalisker
Greater Boston Association of REALTORS - Boston, MA
Professional Standards & Legal Assistant

First mistake  - YOU the real estate licensee should NEVER set the price for anything.

Aug 13, 2015 03:02 AM
Rainer
231,174
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

i assume you mean doesnt "see..l"  not see? i would explain it isnt an exact science and you got this particular formula wrong, and how long is doesnt sell... and how MANY showings, perhaps it isnt the price ( i know..its always the price) but perhaps other factors have entered into it

Aug 13, 2015 02:43 AM