Yesterday I was driving through a couple of local neighborhoods and I saw a few “PRICE REDUCED” riders on for sale signs. In Park City the neighborhood does not seem to be dictating whether a home will fly off the market or languish, it is more about what the individual home has to offer. It made me wonder what do buyers think when they pull up in front of a house with the “PRICE REDUCED” rider front and center?
The first questions that popped into my mind were:
Was the house originally overpriced?
Wonder if the seller is desperate?
Is the home in desperate need of a remodel?
What is the listing agent thinking?
If a buyer has been watching a neighborhood for a while they may know the reason why the house is sporting the “PRICE REDUCED” sign. However if they are just arriving in the area, like many Park City buyers, or starting their house hunt the sign screams there might be a problem. There are buyers who would look at a “PRICE REDUCED” sign as a open invitation to make a lowball offer whether one is warranted or not - like it is not a desirable home. It is like the last can of peas on the shelf at the grocery store... nobody wants it. The perception is something must be wrong with that can if nobody took it.
It seems announcing the positive “MUST SEE INSIDE”, “FABULOUS VIEW”, “GREAT VALUE” or many others are better sign riders to encourage a buyer to want to learn more about the property.
Personally my listings aren’t ever going to sport a “PRICE REDUCED” sign rider even if the top of the sign post has to remain empty!
HEATHER FELDMAN, EQUITY REAL ESTATE LUXURY GROUP PARK CITY 435-731-0803
2 comments:
Great Point Heather. Perception drives price. No one wants to think they could have "done better"
Great point Anne - Interestingly enough after I wrote this I asked a few clients I am working with what they thought. One said their perception was that "It must be a good deal", another said "Now it must be priced where it should have been".
Post a Comment