Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale: Price Reduced or Reduced Price

Price Reduced or Reduced Price

Do you hang swingers on your yard signs when you adjust the asking price of one of your listings?  I, personally, do not do this because I think it screams out to the consumer "Look!!  I priced this house wrong to begin with, but come by and check it out now!!"

Yes, I understand that in today's market, as a listing sits longer and longer, we need to be providing our sellers with updated comps at least once a month, in which that might warrant a price adjustment.  I never use the word "reduce" when talking with my sellers.  I always say "adjustment."

So, back to the subject line... when I'm walking or driving around the different neighborhoods, the most common swingers are "Price Reduced" and "Reduced Price".  I go back and forth on which one sounds better than the other.  The Reduced Price sounds more like a sale price, like when you go to a car lot and see all the red tag stickers on the cars and advertising that says reduced price.  Price Reduced just doesn't speak to me as a consumer like the other.

This sign definitely jumps out at me when I'm shopping... maybe it would work on a house also:

Any thoughts on why it's good to use these swingers?  Which one do you use if you use one?  There is one in my neighborhood that says "New Low Price".  It's not low, it's still a little high, but does that hit a nerve with a consumer to check it out?

Let me know what you think!

Comment balloon 22 commentsDonna Harris • September 11 2007 09:08AM

Comments

I am thinking buy 1 get 1 free would grab attention....lol.....Price reduced is what I normally see -  I am trying not to do that......
Posted by Julie Chapman, New Homes Sales Lakeland Florida (DR Horton ) about 11 years ago
Nope don't own one of those signs and don't want to hang one on my listings either. 
Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) about 11 years ago

Hi Donna,

I agree with you by hanging sings on your sign about price reduction in saying "Look!!  I priced this house wrong to begin with, but come by and check it out now!!" also I always say say "adjustment."

Anthony

Posted by Anthony Stokes-Pereira, Realtor (Better Homes and Gardens Rand Realty) about 11 years ago
I don't use these signs, however if I ever found a need I would go with "New Price". I think that if the home has sat on the market a while you may get a buyer that looked at the home previously to take a second look. However, the problem with this is in order to capture that buyer for the second look you better have the new price soon after they have viewed the property or they will have bought another home already already. Which leads me to believe that for the most part the signs are ineffective unless you want to advertise that your seller is desperate and needs an offer.
Posted by Roy Kotz (NPDodge) about 11 years ago

Donna, Julie expressed my sentiments exactly. 

Keep all of the extra junk off of your signs.  When one is tempted, he should look up the meaning of "decorum," then practice it.

There's a company around here, as you know Donna because you're here in Dallas, too, who uses a great sign...it's the right size, the graphics are good and the signs are clean, and they are never trashed up.  It's Virginia Cook.  For my money, Ms. Cook has it figured out.  Her signs don't trash up her listings.

I think mine are nice, too, but they still aren't as good as Ms. Cook's.

 

Posted by BILL CHERRY, Broker & Wealth Coach (Bill Cherry, Realtor) about 11 years ago
You pose an interesting question. I have a "New Price" sticker on one of my listings, so at least it doesn't announce that I priced it wrong in the first place, but I'm hoping it implies that circumstances have changed with the sellers. Sort of like Apple giving the iPhone a new price.  Hmmmm, I wonder though....
Posted by Jennifer Monroe, Real Estate REALTOR®/Broker in Beautiful Charlotte (Savvy + Company Real Estate) about 11 years ago

How about something more PC, like:

Price Correction!

Or maybe be creative and use a variation on what some of us may have heard just prior to getting into Real Estate in the first place -

Price Right Sized!

Its all semantics either way - dont look at it as an indictment of your pricing.  Remember, the pricing decision is not the sole decision of the agent.  The sellers are involved too.  It is a team decision.  If you dont collaborate with them they might just find someone lese to be part of their team.

Posted by William Moore (Innovative Realty) about 11 years ago

Julie, I wish!!  Many places are advertising BOGO sales these days.

Cindy, I don't own one either, but my sellers will sometimes ask why they don't get a sign like that in their yard.  I tell them we're not wanting to spread the word about how motivated they are...

Anthony, THank you!

Roy, You don't think "New Price" also screams out that it was priced wrong to begin with?  Though I do like the iPhone analogy Jennifer mentioned.

Bill, Granted Virginia Cook doesn't use many swingers, but her actual signs are too busy for my eyes to capture my attention, if I were a plain Jane consumer.  But, this is also one of the reasons why I don't like swingers on my signs and why I don't use them, because I like the clean look...  They can see my contact information much more clearly.

Jennifer, I do like your iPhone analogy...  It's interesting because they were making a killin' at the higher price.  Why would anyone want to reduce their profits if the consumer is willing to pay that price?  It's almost like saying, Mr & Mrs Buyer, I know we're under contract for $400k, but we've decided to go ahead and sell it for only $350k.  Would you like to draw up the new contract or should I?

William, "Correcting" the price definitely screams out that it was priced wrong and you're fixing it... But, yes, I agree, it is definitely semantics and it all means the same at the end of the day.

 

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 11 years ago
Price reduced, new low price (and my favorite) motivated seller ~ smells of DESPERATE!  I say we are to be working in the best interest of our sellers and we are not when we use verbiage like that!  
Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) about 11 years ago
If I see 'Just Reduced' I wonder if that means that they will negotiate down less?
Posted by Tom Burris, Texas/Louisiana Mortgage Pro - 13 YRS Experience (NMLS# 335055) about 11 years ago

I am not a fan of priced reduced or new price or anything remotley like that. This is one subject my wife and I disagree on.

She likes new price.

Posted by Jay McGillicuddy, Real Estate Broker (Berkshire Hathaway HomeServices Verani Realty) about 11 years ago

Renee, I agree!  I've actually had sellers tell me that if they already lowered their price, that maybe they'll come down even more.

Tom, Exactly!

Jay, I think you win this argument, not her!!

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 11 years ago
Great tips as usual.  I like using Just Reduced because it sounds like a sale!
Posted by David Slavin, CDPE, ABR, SRES Keller Williams Premier (Keller Williams Premier) about 11 years ago
I don't use the Price Reduced either on the sign, and I hate to see Motivated Seller! Makes me think the house is a pit! (probably is!)
Posted by Leigh Bates, The Trinity Group (Atlantic & Pacific Real Estate) about 11 years ago
Donna:  Actually, I do not like to put "price reduced" or anything similar on a yard "For Sale" sign.  I would guess the reaction that most people would have when driving past a sign like that would be the same as my reaction...  "Gee... it's not selling, they had to reduce the price.  Hmmm... I wonder what's wrong with it ?"
Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) about 11 years ago

David, But what if it's another 2 months later?  Now, you're having to go back to the sign and removing the swinger because it's not "Just" Reduced anymore...

Leigh, Makes sense.

Karen Anne, I agree, and I think the same thing many times about something being "'wrong".

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 11 years ago
Donna - Don't have on of those signs and never will. Agree with Renee's comments you ahve set your seller up for failure and you are also promoting the fact that you didn'nt price it properly to begin with. Everyone has price reduction buyt why put them on your sing. What impression does that leave on the nieghbors - that you are a great agent? I don't think so!
Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 11 years ago

I just read today that somebody called it a price improvement. Not sure if it was on here or not.

Debbie

Posted by Debbie & Rick Miller, Fort Myers Beach Real Estate (Paradise Realty of SW FL LLC) about 11 years ago
Donna - how about "Priced to Sell". Doesn't make the sellers seem desperate and still has some zing to make buyers check it out. Good post!
Posted by Mike Mitchell, REALTOR (R) (Real Living Kee Realty) about 11 years ago

Well, don't yell at me, but yes I have used the price reduced sign on properties where the seller insisted on listing the house too high against my suggestions and I go ahead and list it and when they FINALLY let me lower it to where I suggested in the first place I PROUDLY (lol) hang that sign because it's now priced right and gets some people to call me back!!

A lot of my problem is that people think I'm too young. I'm 35 but they think I'm 25 and so they want me to list but don't trust my judgement at first. They see the numbers on paper but still don't get it. I'm hoping that will change after time.

Posted by Cheri Smith, Realtor Prudential Gary Greene (Prudential Gary Greene, Cypress TX) about 11 years ago
I have gone back to Buyer's agents that showed my property to tell them about the new price ADJUSTMENT. I too am very sensitive about the REDUCTION word (yikes)!!!!

I feel that I did not do a good job the first time around, hence parading it is not my thing to do.... This is entirely personal though.
Posted by Loreena and Michael Yeo, Real Estate Agents (3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co.) about 11 years ago

I love what you said about using the word "adjustment" when talking to our sellers.  Words can be so powerful and that is a great one!  Thanks for the tip.

 I don't like the sign riders for the very reason you stated.  In addition, it also says "we're ready to deal.  There's play in the price."

Posted by Leigh York, Experienced. Educated. Professional. (CENTURY 21 Judge Fite Company) over 10 years ago

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