DAVIDSONVILLE, ANNAPOLIS, EDGEWATER, ARNOLD AND SEVERNA PARK REAL ESTATE
They may be part of a nationwide trend—but that alone is little consolation for local sellers if they fail to find a market reaction that’s as enthusiastic as they had expected. It’s frustrating, to say the least—especially since it follows the brisk seller’s market that was so widely publicized. If they’ve diligently researched how their Annapolis home stacks up against Annapolis comparable properties that commanded seller’s market prices, unless they deliberately set their asking price markedly above market so they could lower it during negotiations, they had every reason to believe their home should have garnered multiple offers.
But if a tepid response has been the result to date, they might take heart as they enact a price reduction that is clearly in order. As realtor.com pointed out recently in advice to sellers who find themselves in that position, they needn’t feel too discouraged. The title alone, “Reductions Aren’t as Bad as You Think…” ended with a credible reason: “…and Could Even Spur a Bidding War.”
The mounting number of listings for homes showing reduced prices is verified by the numbers. The share of U.S. homes offering price reductions grew from 11% last August to 19.4% this year. But it’s hardly a stampede, nor is it taking place in all areas of the country. In fact, that level isn’t terribly unusual when seasonal patterns are taken into account. The increase may seem abrupt, but is, according to NAR® records, “close to typical 2017-2019 levels.” Even so, it’s increasingly likely that, as NAR puts it, “those legendary days of $100,000 over-asking bidding wars may largely be over.” Still, the possibility that a price reduction could even bring on a bidding war is even now not out of the question.
But “there’s an art” to pulling that off. Timing it properly, fine-tuning the amount of the adjustment, then dealing artfully with the offers that result are part of the solution. An example is the rule of thumb that one large price reduction is usually better than multiple smaller reductions. It has the best chance to “reset urgency” in the market and “strike up activity between multiple bidders.” There is also an art to countering lower offers in ways that achieve higher results.
Part of the value I bring to my clients—from our first conversation to a successful closing—is furnishing the help and advice that achieve just that result. Details? Call!
DEBORAH LAGGINI, Long and Foster Real Estate, Annapolis, MD 21403
EMAIL [email protected]