When is a price drop change completely pointless? When it fails to open the Charlotte NC home for sale up to a wider audience of home buyers.
Not all price drops changes are created equal and honestly some of them are so completely pointless I have to wonder why they’re done at all.
Dropping changing the list price of your Charlotte NC home for sale by $100, $500 or even $1,000 is NOT very likely to reach any more of the active buyers out there and isn’t that the point of adjusting the price….to widen your home buyer audience and increase your chances of finding “the one” for your house?!?!?
As an example….a price drop change of $500 on a Charlotte NC home listed for $150,000 is a 0.3% change. On the same list price a $1,000 adjustment is 0.7%. It’s just not going to expand your buyer audience, yet I see these minimal price drops adjustments all the time.
What will have a beneficial impact on the home buyer audience for your Charlotte NC home for sale? It’ll depend on price range but the point is to get to the next threshold and in front of buyers who wouldn’t have previously considered it based on list price and 0.X% just isn’t going to accomplish that.
Look, market dynamics and conditions shift all the time. It’s not uncommon especially these days for recent solds or new active homes for sale nearby to change the competition landscape for home sellers. Sometimes price adjustments are necessary – just please don’t make an empty gesture of some ridiculously small price change. It’s really not going to help you reach any more buyers than you are right now and buyers agents will see right through it.
In general, homes that are selling (and closing) in the south Charlotte NC region end up somewhere in the 90% ranges comparing the final sales price to the Final list price:
Southeast Charlotte NC Monthly Real Estate Market History
For home buyers – take note when sellers are serious and make an effective price drop change because it WILL open up that Charlotte NC home for sale to more home buyers plus it indicates that the homeowner is serious about selling that house AND about effectively competing with other homes for sale.
Most Charlotte NC home buyers know to ask their buyer’s agent about the history of any given home for sale, how long it’s been on the market, etc. Price changes are an important part of the history too so home buyers, don’t go house hunting without it!
Copyright©2010 by Diane McDermott, All Rights Reserved, “When Is A Price Change Pointless?”