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Friday, April 30, 2010

Price Adjustment, Price Reduction, Price Modification:...What You Call It Matters Not!

I saw an MLS entry that stated the seller was making an adjustment in the price. I saw another that read “Huge Price Reduction!”  While there was another that said price modification.

When a seller makes a price change, regardless of how it is portrayed, it sends a signal.  It can signal (or be interpreted as) one of several things.
  1. Seller realized price was not competitive. Real estate agent has provided concrete data to support the new realistic price.
  2. Seller has decided a reduced price will get an offer to negotiate back upwards or, even better, multiple competing offers!
  3. Listing is shifting from a standard sale to a short sale.
Regardless of the real reason – a reduction, modification or adjustment often is interpreted as a sign of desperation.

Of course if you price appropriately the only signal you will be sending is “will not last long!”

Gary L. Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region. 

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