It seems in this real estate market that buyers are hypersensitive to what they can gleen of signals from brokers and sellers. If the grass needs mowing or a fence rail is down seems to send a message to buyers that the property owners are in trouble and its time to strike. Given all the hype and misdirection the media is giving the real estate market, it’s to be expected. However, the most brazen sign of a troubled seller  to a buyer in the lowering of the price. That is a sure sign that the owner is desperate and needs out. Without question if a property has had a price reduction and a serious buyer looks at it, the interpretation is that it can keep going south in price. If the property is being represented by a responsible broker, nothing could be further from the truth. A conscientious broker always helps the seller establish a listing price on a property. Current information as to what has sold and what is currently available and its listing history are the most important tools for a broker, aside from sound experience. The key word here is current. If real estate was traded strictly as another commodity, it would have price fluctuations daily just like all other commodities. But of course it not, but an astute broker needs to stay closely in tune with market conditions and react to market conditions by way of informing the sellers of price changes. If a property is still on the market after 6 months, chances are very good that conditions have changed to where an adjustment in asking price might be appropriate. In the case of accurate and sound advice from a broker, a reduction is listing price really signals that the broker is doing their job and a new price is more in line with todays market. It has nothing to do with the financial stability or instability of the seller. As the real estate markets are changing so rapidly, it is entirely possible that regular price changes become the norm. The message to buyers is, do your homework and don’t rush to judgements that might make you look foolish.

Posted by Wade I. Treadway