If You’re Cutting the Price 30 Days Later Because Nobody Is Making an Offer, the Market Didn’t Suddenly Change It May Be Telling You the House Was Overpriced From Day One.
Written by Devone Richard
6
LET’S STOP CALLING IT A PRICE REDUCTION
Your house goes on the market for $1,250,000.
Your Realtor tells you the comparable sales suggest something closer to $1,150,000.
But you want to “test the market.”
So you list at $1,250,000.
Two weeks go by.
Showings are slow.
No offers.
Thirty days later, you reduce it to $1,199,000.
Then $1,175,000.
Eventually, you’re sitting around $1,150,000—the number your Realtor discussed with you before the house ever hit the market.
And now everybody celebrates:
“WE DID A PRICE REDUCTION!”
No.
You didn’t reduce the price.
YOU FINALLY GOT CLOSER TO THE PRICE YOU PROBABLY SHOULD HAVE STARTED AT.
There’s a difference.
THE MARKET DIDN’T KNOW WHAT YOU PAID, SPENT OR NEED
6
Sellers naturally have a number in their heads.
Maybe you need a certain amount to buy the next house.
Maybe you remodeled the kitchen.
Maybe you installed new flooring.
Maybe you’ve owned the property for 20 years.
Maybe your neighbor told you what they think it’s worth.
Maybe Zillow gave you a number you really liked.
I understand all of that.
But buyers aren’t sitting at home calculating what you need.
They’re comparing your property with everything else they can buy.
That’s the uncomfortable reality.
THE MARKET DOESN’T PRICE YOUR HOUSE AROUND YOUR FINANCIAL GOALS.
It prices your house around what buyers are willing to pay.
“LET’S JUST TRY IT” CAN BE AN EXPENSIVE SENTENCE
This is one of the most dangerous phrases in residential real estate:
“Let’s just try the higher price and see what happens.”
It sounds harmless.
What’s another $50,000?
If nobody buys it, we’ll lower it later.
Right?
Except your first weeks on the market can be some of your most valuable.
That’s when the listing is fresh.
That’s when buyers who have been waiting for something like your property notice it.
That’s when agents send it to clients.
That’s when your listing gets its first wave of attention.
And you decided to use that attention to test a price buyers may immediately reject.
YOU ONLY GET TO BE THE NEW LISTING ONCE.
Waste that moment and you can’t simply rewind the clock.
OVERPRICING CAN ACTUALLY HELP SELL THE OTHER HOUSE
6
Here’s something sellers rarely consider.
Your overpriced house can make the properly priced house down the street look like a bargain.
Imagine two similar properties.
One is listed at $1.2 million.
The other is listed at $1.1 million.
Buyers tour both.
Your house may actually be helping the competition.
They walk out of yours and say:
“For that price, the other one makes more sense.”
Congratulations.
Your listing just became somebody else’s sales tool.
That’s why pricing isn’t just about getting your number.
It’s about positioning the property against every other option available to the buyer.
THEN THE LISTING STARTS TO SMELL OLD
Buyers notice days on market.
So do Realtors.
A house that’s been sitting creates questions.
What’s wrong with it?
Why hasn’t anybody bought it?
Did another buyer find something during inspections?
Is the seller difficult?
How low will they go?
Maybe absolutely nothing is wrong with the house.
Maybe the only problem was the original price.
But perception starts changing.
The same property that looked exciting on Day 1 can feel negotiable on Day 45.
YOU STARTED TRYING TO GET A PREMIUM AND ENDED UP GIVING THE BUYER LEVERAGE.
That’s the irony of overpricing.
THEN EVERYBODY BLAMES THE MARKETING
5
Around Week 3, another conversation usually begins.
“Are we marketing the house enough?”
Fair question.
Your Realtor should market the property.
Professional photography.
Strong presentation.
Online exposure.
Social media.
Agent outreach.
Open houses where appropriate.
Good marketing matters.
But marketing and pricing do different jobs.
Marketing can get attention.
MARKETING CANNOT FORCE A BUYER TO OVERPAY.
You can have beautiful photography, drone footage, cinematic video and the best property description in California.
If buyers believe the house is worth $1.1 million and you’re asking $1.25 million, the photography doesn’t magically create another $150,000 of value.
Sometimes the marketing isn’t broken.
THE PRICE IS.
YOUR REALTOR SHOULD BE WILLING TO HAVE AN UNCOMFORTABLE CONVERSATION WITH YOU
A good Realtor shouldn’t simply agree with whatever price gets the listing signed.
If the data says $1.1 million and you want $1.3 million, your Realtor should explain why they disagree.
Not disrespectfully.
Not arrogantly.
But clearly.
Show you the comparable properties.
Show you what’s active.
Show you what’s pending.
Show you what actually sold.
Explain the competition.
Explain buyer behavior.
And then give you professional advice.
You don’t hire a Realtor to become emotionally attached to your number.
YOU HIRE A REALTOR TO HELP YOU UNDERSTAND THE MARKET.
Sometimes the best thing your Realtor can tell you is something you don’t want to hear.
PRICE REDUCTIONS AREN’T ALWAYS BAD
7
Markets change.
New competition appears.
Interest rates move.
Buyer demand can shift.
A property may receive feedback nobody anticipated.
There are legitimate reasons to adjust a price after listing.
So I’m not saying every price reduction proves the seller made a mistake.
I’m talking about something different:
When the market data supported one price from the beginning…
The Realtor recommended something around that price…
The seller insisted on starting considerably higher…
And weeks later the listing slowly works its way back toward the original recommendation.
That’s not the market suddenly discovering your home’s value.
THAT’S THE SELLER FINALLY LISTENING TO THE MARKET.
DON’T CHASE THE MARKET DOWN
One of the worst outcomes is when a seller keeps making tiny reductions while buyers keep moving ahead of them.
$1,250,000.
Then $1,225,000.
Then $1,199,000.
Then $1,175,000.
Then $1,149,000.
Months have passed.
Buyers have watched every reduction.
Now instead of thinking:
“We need to move quickly before somebody buys it.”
They’re thinking:
“Let’s wait. They’ll probably reduce it again.”
You have completely changed the psychology of the listing.
The seller is chasing.
The buyer is waiting.
That’s not where you want to be.
FINAL THOUGHT
6
Sellers, your Realtor isn’t trying to give your house away by recommending a realistic price.
And the highest suggested list price doesn’t automatically mean you’re getting the best Realtor.
Anybody can tell you your house is worth whatever number makes you happy.
The hard part is finding a buyer willing to write the check.
The goal isn’t to win the argument about what your house should be worth.
The goal is to sell the property for the strongest price and terms the market will actually support.
So before you say:
“Let’s start high. We can always reduce it later.”
Remember:
You can reduce the price later.
You can’t recreate the first day on the market.
You can’t make the listing new again.
And you can’t force buyers to forget they already rejected your original price.
SOMETIMES YOUR FIRST PRICE REDUCTION SHOULD HAVE BEEN YOUR ORIGINAL LIST PRICE.
PRICE IT RIGHT. POSITION IT RIGHT. AND LET THE MARKET COMPETE FOR IT INSTEAD OF WAITING FOR YOU TO COME DOWN.
— Devone Richard
Written by Devone Richard
Broker/Owner | OYT Real Estate
California Broker #01857383
Nevada Broker #1002115
📞 626-500-1212 | 702-941-0202
🌐 OYTRealEstate.com