This past week our showings saw an average of 2.1 showings each. Although our showing numbers were slow, activity was strong. Buyers have seemingly been getting off the fence more consistently, especially in the first time buyer market segment.
There seems to be more activity and there are lots of signals that the market is beginning to improve. However, a successful sale still requires focus and proactivity under the current market conditions. Last week one of my clients decided to take such a step to bring them closer to their goal of selling their home; their action was in the form of a price reduction.
This particular listing is a gem, but in its first month on the market it saw almost no traffic. Last week we reduced the price by about 5% and the result was exactly what the sellers had hoped. We had three showings in three days following the reduction and the home was under contract by the end of the third day.
Many sellers take the position that a reduction in price is not a good idea because a buyer “can always make a lower offer.” But experience along with data shows that simply is not true. With high levels of inventory on the market, even minor price reductions can lead to increased traffic and ultimately an acceptable offer.