Price “improvement”

I have noticed that more and more listing agents are using the phrase “price improvement” in place of the more traditional ones like “price reduction” and “price adjustment”. As you have probably learned by now realtors love euphemisms and cryptic descriptions so it seems logical that these preferences would find their way into some of the fairly straight forward aspects of residential real estate sales.

What does it all mean though? Is there really a difference between a price reduction, adjustment, and improvement? Perhaps. Perhaps not. No matter what words are used to describe a change in the price it all amounts to the same thing: the seller/s are now willing to part with the property at a lower price (not $20,000 under the new and “improved” price, mind you, but that’s a topic for another day). Regardless, it likely will not come as a surprise that this is not always how buyers interpret the decision. Buyers may assume the “improvement” means any or none of the following:

  1. The sellers are desperate to sell.
  2. There is something terribly wrong with the property, aside from the price originally being higher than buyers in the market were willing to pay.
  3. The sellers are probably willing to “give the house away” and accept unnaturally low offers that make cash only foreclosures seem as though they are being sold at premium prices by comparison.

More often than not though, a price reduction/improvement/adjustment really just means the biggest problem impeding the sale of the home is that it was originally priced too high for that particular market when taking into account its condition, location, updates (or lack of them), need for repairs, size, price point, financing options, etc. If you see that a giant sinkhole has opened up in the yard just prior to the “improvement” then you have your answer as to why the price has changed. However, if you see a listing that has been reduced by quite a lot and you cannot pinpoint any obvious reasons for it during showings, in the property disclosures, within the deed, or through the inspection of other sources of information about the property then there is a good chance the above is true. It was simply priced too high to begin with.

sinkhole

About Melissa Higgins
Client-centered realtor to assist with renting, buying, and selling needs. I work for BHG / The Masiello Group which has a wide range of services to assist in allowing me to help you realize your real estate goals. I serve all of Southern New Hampshire, including Nashua, Merrimack, Bedford, Manchester, Hooksett, Milford, Hollis, Pelham, Brookline, and many others. Contact me to talk about how I may help you.

Comments are closed.

%d bloggers like this: