Don’t drop price if listing isn’t selling?

December 11th, 2009 11:56 AM

When listings are languishing on the market, real estate agents should not automatically jump to reduce the price – unless the asking price was too high from the start.

If a price reduction is meant to attract attention, experts say it would have to move the listing into a new price range to draw a new set of prospective buyers, which could mean shaving as much as $20,000 off the asking price.

Agents likely priced the home appropriately in the first place, and suggesting a price reduction to the seller could hurt their credibility.

Experts also note that price reductions generally are not the right strategy for sellers, especially when numerous other steps can be taken to spruce up the home and generate interest without budging on price.

Source: Realty Times (12/07/09) Allan, Jennifer

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