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
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
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.