Price Reduction Vs. Re-list at a New Price
Most data suggests that if a house is not selling it’s because it’s priced too high. Certainly a price decrease usually makes the house affordable to more buyers. Whether you’re buying or selling, be aware that there are several strategies that may be employed when a house price is being decreased. A seller and a seller’s agent may decide to simply reduce the price on the existing listing. This has the benefit of being completely transparent and visible to buyers and buyer’s agents who may be tracking the home as part of their ongoing search. But unless the price drop is very significant (think over $10k), a listing that’s been on the market more than a few weeks may be stigmatized in the minds of some who think there must be something wrong with the house or it would have been sold already.
Canceling the existing listing and relisting the house at the new reduced price is a strategy that some may consider deceptive or misleading. But the reality is that the information on the house being listed previously is out there for those that dig for it, and the benefit of being a new listing at a reduced price is that’ll appear at the top of buyer’s radars who may be looking. That sort of immediate impact is often what it takes to get new attention regarding a new price in today’s work.