Listing Price Changes Move Both Directions
I’m reviewing my hot lists tonight, where I track New, Pending. Back on Market, Price Changed, Expired, Withdrawn and Sold listings for certain areas I like to stay informed about. Of the six Price Changed listings tonight, three have been changed to a higher price, and three to a lower price. I’m seeing this more often. What does it mean?
Sometimes initial activity is so strong on a home that the listing agent and seller will decide to move the price up some. I almost did this on a listing last month. We kept getting multiple offers, but they were too low – rehab investors looking for a flip opportunity. The seller kept holding firm at full price, which was justified. I told the seller that if nobody from the current batch of three offers stepped up to the plate, we ought to consider raising the price because I thought the market had shifted upward. It wasn’t necessary – before that happened, we received a re-submitted offer over the list price, which is what we were hoping for.
Another reason prices can be changed upward is, after getting enough negative feedback from agents who have shown a property, a seller will finally agree to make improvements such as new carpet, landscaping, replacing worn out garage doors, painting, etc., and the improvements justify a higher price. Sometimes the higher price is just a breakeven on the improvements made but it still helps the home sell a lot faster. Buyers do deduct disproportionately from their opinion of a home for simple cosmetic conditions. We constantly have to remind buyers to look at the potential in a home and don’t let small, easy to cure cosmetic things distract from the floorplan and other features. But it’s harder than most sellers think for buyers to look past clutter and deferred maintenance. Nothing sells better than a home that shows Owner Love!