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  • Price reductions abound in Buncombe county and what to do if your home is not seeing the activity that it deserves

    Tuesday, December 5, 2023   /   by Amy Brown

    Price reductions abound in Buncombe county and what to do if your home is not seeing the activity that it deserves

    There is a misconception that just because a property drops its price that there must be something wrong with it. And while that may be true in a booming seller's market, it is definitely false during a market shift. And we are in a market shift!

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    Today's featured properties are from Buncombe county and all have experienced recent price reductions. What that means for you, my lucky buyer clients, is that you now have a motivated seller who is more likely to be open to negotiation. It also means that these homes are probably excellent buys and shouldn't be overlooked. 

    In a market with relatively tight inventory, why would a property have a price reduction unless there is something wrong with it?

    Here's why: Incorrectly pricing a home from its market debut and how to fix it

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    • Little traffic and no offers: Sometimes it can be really hard for sellers to accept that we are no longer in the market of 2022/early 2023 and properties need to be priced optimally at 10% below or AT market value in order to sell in the average days on market. If you are experiencing low traffic or no offers, this is the most obvious red flag that your home is overpriced for today's market and you’ll likely need to adjust the price downward to get potential buyers interested.
    • Good traffic but lowball offers: Receiving lots of showings is a great sign that your home is very appealing to today's buyers. However, if you’re receiving good showing traffic but all low-price offers, that’s a sign you’re on the cusp of the right price but not close enough to market value. In this case, a small price adjustment may be necessary.
    • Good traffic but negative reactions: Agents leave feedback from their clients after every showing in order to help the listing agent and the home seller know what, if anything, they might need to do differently to facilitate an offer. If buyers coming to look at your home are specifically making comments about the price, you know you’ve likely set it too high. The best way to find out the optimal price in this scenario is to have your agent (Me!) reevaluate your comparative market analysis in your neighborhood. The market could have shifted further in your area pushing you into the "too high" category. 
    • On the market longer than average: The average days on market in Buncombe county in November was 35 days until under contract and a total of 57 days to close. If your listing has been up significantly longer than average, that may be a sign you need to reduce the price.
    If I need to make a reduction, when is the best time to do that?

    A property's activity should be evaluated weekly with your agent to determine if you are on the right track. Indications that you are priced correctly will be a high number of showings and inquiries and hopefully an offer within the first 21 days. If you have surpassed the 3 week mark, then it is time to make a price adjustment as interest has probably waned as well.

    How many price reductions are too many?

    That all depends upon how over market value you were to begin with. If the feedback indicates that the home is drastically overpriced, then it is much better to make a large price reduction (generally 4-7%). If the property indicates a slight change than 3% or less should do the trick. The goal of a price reduction is to get the property under contract while still maintaining the highest profitability margin for the seller. With this goal in mind, price reductions should be done strategically and with as few as possible to get the job done.

    Now by understanding why properties conduct price reductions, as a buyer, this should alleviate some concerns. Don't look at a reduced price property as "damaged" in some way...look at it as a great opportunity for you to get the home that you desire at the right price AND know that you will be working with a seller that understands the current market activity and value of comparable homes. This should make for the smoothest transaction process for both parties involved and end up with both a happy seller and joyful buyer.

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