June 28, 2013-The Impact of Price Reduction

House-Price-See-Saw

Know the Research!

 

Many Sellers start out with a price point higher than the market will support.  Inevitably when the property stays on the market for too long there is talk of price reduction. Eventually the price may drop to the point of being in alignment with the market. So of the course of months the sellers have arrived at the price which was originally suggested by a comparative market analysis.   When this happens does it impact the marketing and sale of a house in a negative way?  While there are many opinions on the matter there has recently been a scientific investigation on the subject by  John R. Knight. Unfortunately,  the results of Professor Knight’s research are not well known.

The research indicates that, Sellers wanting to fetch a high (inflated) price will stay on the market longer and will eventually sell for less. This indicates more work, more time and energy wasted for Brokers/Agents- and more frustration for Sellers! This is why Conroy and Company takes great care in knowing our market and producing a detailed analysis of the market and the proper price for your property.

Getting the your property on the market at the right price is best for all involved!

 

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