Home sales: A price cut, by any other name, smells sweeter | Business Of Life | Crain's Chicago Business

Home sales: A price cut, by any other name, smells sweeter | Business Of Life | Crain's Chicago Business

So, the gist of this article is to put a positive spin on the dreaded but all too familiar "Price Reduction". Instead of calling it a price reduction, some agents are now calling them "Price Improvements".

I have mixed feelings about this strategy. On one hand, I think anything you can do to make a price reduction sound more appealing is a good thing. By calling it a "price improvement" you're sounding less desperate. Kind of like a close out sale where "Everything must go!" Instead of conveying that message, they're saying, "Please stop by and see our home with a newly improved price."

On the other hand, if it walks like a duck, quacks like a duck, its probably a duck. You can try and disguise it, but it is still a price reduction and that is how buyers will perceive it.

The best advice I have to sellers in this market is to list their home based on what is selling in the neighborhood. Do not think that you need thousands of dollars of negotiating room -- those days are long gone. A potential buyer will still sometimes try to present a low ball offer but if you price the home right to begin with you will have a larger buyer pool right off the bat and a better chance of getting an offer close to the list price. The most activity you will see on your home will be in the first two weeks on the market.

So, do I think it is a good idea to call them "Price Improvements" instead of "Price Reductions"?? It certainly couldn't hurt! My answer is go for it agents.