Don’t Count on a Price Drop to Reignite a Listing
May 29, 2019
Home buyers who want to test the market by listing their home for a higher price may want to rethink that strategy. Homes get 3.4 times more online views the day they are listed than they do the day the seller drops the price, a new analysis from the real estate brokerage Redfin finds.
“It’s critical to price your home to sell from the start,” says Daryl Fairweather, Redfin’s chief economist. “Fair or not, buyers judge a home by how many days it has been on the market. A home that has been on the market for more than a few weeks has a scarlet letter on it, and buyers will wonder why no one else wanted to buy it. Dropping the price can help get your home onto the radar of some buyers who are searching for homes priced just below the original price, but you likely won’t be able to regain the appeal of a newly listed home.”
Researchers found that a typical home for sale that is viewed by 100 buyers online on its first day receives a fraction of that after 30 days on the market, averaging only 17 views per day at that point. When the seller drops the price, that will lift the views only slightly to 29—and that increase will last only for a single day, researchers find. Then the home’s views fall back to an average of 18 per day.
Online views of homes for sale drop off significantly after the first day. Home sellers receive half as many visits on day two and then just a quarter as many after a week listed on the market, the analysis found.
“Newly Listed Homes Get 3.4 Times More Online Views Than Those With a Price Drop,” Redfin (May 24, 2019)
Updated: June 27, 2019