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Home Sellers Are Beginning To Cut Prices…

Updated: Jun 14, 2022

We can feel a recent shift in the market due to many variables and as a result sellers are beginning to cut back their listing prices at a noticeable rate. When I work with a buyer or seller I always advise them that the listing price strategy used by sellers varies by city. In some cities like Oakland, list prices are significantly lower than expected sales price in order to attract substantially high offers. In other cities the pricing is more transparent and those are the areas I am beginning to see these price reductions. According to a recent report “Nearly one in five sellers dropped prices during the four week period ended May 22.” This could spell opportunity or disaster depending on the agent you are working with. What does this mean for my clients? It’s actually an opportunity hidden in plain sight. For my buyers, even before a listing has reduced in price, I have already talked to the listing agents beforehand to get a gauge on the response to their listings and if they have received any offers. In April, just 60.7% of home offers written by its agents faced competing offers, compared to 63.4% a month earlier and 67.4% a year ago. If I can jump in the mix quickly before their price reduction and offer a low price, they feel like they are saving face and did not have to advertise a public reduction in price. For sellers the conversation is a little more delicate because we need to start at a price point that will encourage lots of interest, but also not so high that we also may need to look at a price reduction.


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