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Published November 12, 2019

How to Know if It’s Appropriate to Reduce Your Asking Price

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Written by Joe Brooks

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Should you lower the price of your for-sale home? Here’s my advice.

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I’m often asked by clients if they should lower the price of their home.

To answer this question, we have to look at a few factors:

First, examine the market area you’re in. As always in real estate, location can make all the difference, so be sure to study your neighborhood.

Also, look at how much activity you generate with your online advertising. How many showings are you getting compared to the length of time that the home has been on the market?

The efficacy of a price reduction will be different for a home that costs more than $1 million as compared to a $100,000 home.

Studies have shown that the first 30 days a home is on the market are the most important. If you think you’re generating less activity for your listing than you should be you might want to consider doing a price adjustment within those first 30 days to capture any new buyers in the market. 

If you decide to go forward with the price adjustment, you’ll need to adjust it by at least $5,000 to have any impact—a $500 reduction to the price of your home wouldn’t even be worth the time it would take to do it.

Finally, take into account the price range your home falls into. The efficacy of a price reduction will be different for a home that costs more than $1 million as compared to a $100,000 home.



If you have any questions about price reductions or other real estate topics, don’t hesitate to reach out to us. We hope to hear from you soon!


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