After a crazy ride in real estate the last few years, it’s finally slowing down. Inventory, while still historically very low, is starting to build up as rates climb, making buyers more cautious with the current economy. Yes, homes are still selling by the truckload every day, but for some sellers, the window of opportunity to get multiple, above-asking offers on their homes has now passed. After sitting on the market for what feels like an eternity (it’s not really, but after the last two years of everything selling in hours, a few days or weeks feel like forever), sellers are starting to drop prices.

A huge advantage of course to watching reduced properties (particularly ones that have been on the market for 30 or more days) over ones hot on the market is that your competition is much less. Many buyers assume something is “wrong” with the home because it hasn’t sold. Why are sellers dropping prices? Does this mean the home is plagued with problems and should be avoided? Not necessarily. Common reasons a home will see a price reduction are:

• The most obvious answer: The home was overpriced in the first place. After the last few years, some sellers have high hopes they can cash in on the frenzy. But, they were a little too late. I like to call this “aspirational pricing”. Buyers are not fools. They can compare an overpriced home to others online and come to the conclusion that it’s not worth it without even stepping foot on the property.
• Nearby comps are priced lower. Gotta love it when your neighbor under prices their home and if it’s similar in condition, it’s going to sell first.
• The home appraised low and/or a buyer backed out.
• The home had a rough inspection and the seller isn’t planning to make any repairs.
• The home is has an unusual layout or is in a low-demand area.

Ready to see what properties are reduced in your area? Take a look at current, available properties that have recently reduced their asking price today!

• Reduced Single Family Homes
• Reduced Townhomes
• Reduced Condos
• Reduced Land
• Reduced Multi-family

As always, have a wonderful week! I’m here if you need me!