believe it takes a 10% reduction in order to stimulate
interest. This is not the thinking of people who are real estate savvy. Lopping ten per cent off of
the asking price is the kind of amateur advice that is freely available on the Internet, the barber
shop and salon. It might also be passed around at the water cooler, so long as that cooler isn't
located in a real estate office.
2. Lots of 000's. $20,000 - $50,000 - $100,000: these are noticeable amounts of
money to just about everyone. Reducing your asking price by a number with lots of zeros is more
likely to stimulate interest than simply cutting a blanket percentage off of the price.
Prospective buyers usually do not have much imagination. If a potential buyer is concerned because
your house doesn't have central air conditioning, for example, telling them you have an estimate
for $15,000 to put in air conditioning and that is why you have reduced the price by $20,000 may
satisfy that concern.
3. Re-bracketing. Reducing your asking price by dropping it to a lower bracket is the best way to
ensure the most action for the smallest reduction. These brackets are important because people
search for houses by price. One of the first things prospects type into a search engine is the
price bracket they are interested in.
If your initial asking price was $319,900 and you had few offers, dropping below $300,000
to $299,900 opens the door to many more prospects.
You can use the following price brackets found at www.realtor.com and many other real estate
search engines as a guide to lowering your initial asking price:
$75,000 100,000 125,000 150,000 175,000
200,000 225,000 250,000 275,000 300,000
350,000 400,000 450,000 500,000 550,000
600,000 650,000 700,000 750,000 800,000
850,000 900,000 1,000,000 1,250,000
Pricing ABC's - Pricing Your House to Sell
Pricing ABC's - Pricing Your House to Sell - Determining the Price
Pricing ABC's - Pricing Your House to Sell - Finding Comparables
Pricing ABC's - Pricing Your House to Sell - Setting the Asking Price
see Staging for Sale for tips on staging your house to sell ASAP.
