Why a price reduction is usually better

I practically wrote this post in my head last night.  I woke up just before 3 and never really went back to sleep.  Then riiiight when I was about to fall asleep, the dog barked at 5:AM and wanted to go out.

As I was lying there, hoping to fall asleep, I got to thinking about those houses that get the same negative feedback from showings and how sellers sometimes respond.

Let’s say a house is getting showings but no offers.  The feedback you get is something such as the buyer didn’t like the kitchen.  The kitchen is plain.

I often get asked by my sellers if they should do something like spend money getting granite.  I probably disappoint them because I usually say it isn’t a good idea.  It is better to reduce the price.

To a seller, this one thing is what appears to be holding back the sale so it only makes sense to remove the negative that has been a common thread in the feedback.

Having done this for a while, I know how it works.

See, the buyer walks in the house hoping it is THE one.  They look around until there is something they cannot live with.  Once they have made the decision that they will not be making an offer, they quit looking at the house.  Sure, they may walk around the rest of the house but they don’t really think about it any more because they know it isn’t the one.  They’ve checked out.

Then you get the feedback that they didn’t like that certain feature.

You spend a lot of time and money fixing that feature.  You turn that frown upside down.  You get a new batch of showings expecting it to sell because well, you’ve resolved the only problem previous buyers had with the house…..then you get feedback and there is a NEW problem.

See, what happened is that the buyers got past whatever problem you fixed.  You did a good job.  They kept looking at the house with serious buyer eyes.  They made it further into the showing this time before the next big negative became the issue.

IF that happens, then you’ve really wasted the money you spent because now your house isn’t selling for some other reason.  That is why I think it is safer to reduce the price verses spending a lot of money.

There has only been one time in the past 12 years where I was wrong on this.  I gave my client this same advice that you have read.  She insisted on getting granite.  LOL, the very next buyer bought the house……So if you’re reading this Tammy M, I hope I have made your day!

 

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