This question is geared more toward the Realtors in here. The question is, does minor price change do anything? When I say minor, I mean price dropping between $1-$10k on a $800k house. Anything less than 2%, I’d consider minor. What’s the motivation and logic behind these price reduction? It just gets me shaking my head. Especially on homes that has been listing for months.
I would agree… I think it depends on the climate in which this climate is abysmal and the amount of activity you have on the home. Seller psychology is such a wildcard… sometimes you get sellers who get it and some don’t. If you have a dog listing that has had 3 people come by in 4 months then you would figure a large cut is in order and then the seller lets you cut the price by 2% and you wanna pull your hair out.
Hmmm… 4plex I don’t really agree with that statement in the least. Changing prices conveys weakness and desperation. It is also a reflection that the home was not priced right to begin with. So your insinuating that realtors advocate lots of price changes simply to put your home on the hot list.
SD: Do buyers really care about price history? I would just compare present price with the house to see if it makes sense (compared to other houses). I don’t think I will worry too much about their past pricing strategies; specially in these tumultous times.
Some do some don’t… Buyers come in all flavors but I find that the more savy buyers do indeed care about price history as well. I know for my own offers that I have this year I watched the history just to give me an idea of the behavior of the seller. I think in negotiations the more information you have the better. I do understand your point though that it is not really a reflection of value.
In the upward market, you do because you need to find out how much you have to offer for a house. In the downward market, you still do but not as much because you can always negotiate with the seller at the price that makes you happy.
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