Which is more effective: one 6% price reduction or two 3% price reductions?

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Which is more effective: one 6% price reduction or two 3% price reductions?
By Scott Rogers • May 1, 2012 Filed In: marketing, selling
OK, admittedly, I don't have any data readily available to back this one up -- but in almost all cases, it seems that a quick 6% price reduction (for example) will work better than two 3% price reductions over time. For example, the quick six..... House is listed for $300K on January 1 House is reduced to to $280K on March 1 (roughly 6%) As compared to.... House is listed for $300K on January 1 House is reduced to $290K on March 1 (roughly 3%) House is reduced to $280K on May 1 (roughly 3%) Unless you think you have a great chance of selling the house after just one of the 3% price reductions, it's almost always better to make a faster, larger price reduction. This price change is more noticeable to buyers and more quickly gets you to a what will hopefully be a realistic selling point. As a further example, I have seen sellers who have knocked off $5K every other month for an entire year. Oh, how I wish they had just knocked off $30K that first month. Each of the progressive $5K reductions had very little impact -- but a quick $30K reduction would have been much more news-worthy and may have inspired a buyer to act. Receive updates from HarrisonburgHousingToday.com via e-mail: Enter your e-mail address:
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through May 18, 2013 (unless otherwise noted).
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
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