How much to drop price?

[Anonymous]

Is there any common wisdom about this? My agent is saying an amount that feels arbitrary to me, and doesn't have any explanation for why he picked it. Is it usually a percentage of ask? A set amount of dollars?

[Anonymous]

Just avoid doing what these people have done:

http://www.redfin.com/VA/Arlington/3842-N-Glebe-Rd-22207/home/11228785

[Anonymous]

Anonymous wrote:Just avoid doing what these people have done:

http://www.redfin.com/VA/Arlington/3842-N-Glebe-Rd-22207/home/11228785

What, coming down $140,000 from list?

That listing is near me. I think one of the agents dropped a word from his review -- that's actually a very NON-busy section of Glebe. Still a main road, but it's surprisingly quieter up that way.

[Anonymous]

Reducing it a few hundred or thousand dollars every few days. If you're going to reduce the price, do it once.

Anonymous wrote:

Anonymous wrote:Just avoid doing what these people have done:

http://www.redfin.com/VA/Arlington/3842-N-Glebe-Rd-22207/home/11228785

What, coming down $140,000 from list?

That listing is near me. I think one of the agents dropped a word from his review -- that's actually a very NON-busy section of Glebe. Still a main road, but it's surprisingly quieter up that way.

[Anonymous]

Anonymous wrote:Reducing it a few hundred or thousand dollars every few days. If you're going to reduce the price, do it once.

Anonymous wrote:

Anonymous wrote:Just avoid doing what these people have done:

http://www.redfin.com/VA/Arlington/3842-N-Glebe-Rd-22207/home/11228785

What, coming down $140,000 from list?

That listing is near me. I think one of the agents dropped a word from his review -- that's actually a very NON-busy section of Glebe. Still a main road, but it's surprisingly quieter up that way.

Ah I couldn't tell that from the history, although I did note that the last drop was $500. Makes you wonder if something weird is going on. Maybe they're trying to keep the asset while the owners are in a nursing home or something but it technically has to be on the market?

[Anonymous]

Oh, it's a former foreclosure, purchased in June 2012 and put on the market again in October. Obviously a hasty flip.

[Anonymous]

If its under $1M, after 30 days, drop it $10K

[Anonymous]

Anonymous wrote:If its under $1M, after 30 days, drop it $10K

I doubt that's enough to get you any movement, honestly. I'd say $20k-$30k minimum.

[Anonymous]

Ask your agent what the price of your house would be if you were to sell it in a week. That's your point of reference. The more you're able to drop the price and end up getting somewhat close to that number, then the easier it will be to sell your house without you having to keep your house in show-able condition for dozens of weeks.

As mentioned by the PPs, you don't want a whole bunch of tiny little price drops, relative to the price of the house. If your house initially lists for $1,150,000 and you drop the price $20k after 30 days, you're only going to spin your wheels. If my house was initially priced $1,150,000 and it sat for 30 days, I'd drop it 6% or 70k. If I had a house listed for 1 mil and it sat for 30 days, I'd drop it 4%, or 40k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If its under $1M, after 30 days, drop it $10K

I doubt that's enough to get you any movement, honestly. I'd say $20k-$30k minimum.

In the under $1M category, $10K is enough to push it into a different search bracket which widens exposure. Example if you are searching for properties up to $599 and your home was priced at $620K, it won't show up most times in that person's search but if you drop to $610K it will start showing up. Most people will not build in a buffer to their price to allow for a $20K price drop right off the bat plus leave room for negotiation. The price drop is really a good will type gesture showing the seller is serious and is willing to negotiate and that often is enough for someone to make an offer.