The Weirdest Price Drop
of My Life
I have done lots of price drops for my listings. It’s generally a routine task; have the seller approve the price drop, and then bam, it’s instantly dropped on all the major websites. Usually, a home seller drops the sales price in anticipation of getting an offer. However, I had one price drop last year while the house was under contract.
It was odd, and the seller had no strange twist for doing so. The house went under contract, and a few days later, my seller asked me to do a price drop. I thought I knew why, but I had never had that request. His reason? He dropped the price a few thousand dollars in anticipation of the buyer backing out during the home inspection period. The price drop was still higher than the agreed upon sales price, so it did not impact or negatively impact his bargaining position with regards to price. But, unsurprisingly, it raised eyebrows from the buyers. “Why on Earth is the seller reducing his price while we’re are under contract??” This is the only time I’ve seen it happen.
And it raised skepticism on the buyer’s part about why the seller made this move. There were some other things related to the contract that were contentious, and this just added fuel to the fire. The seller was just trying to prepare for the worst and who knows, maybe it put increased pressure on the buyer to move forward? I don’t think so in this case, but I certainly could see it other cases, maybe. It could also signal the seller is just desperate and give the buyer a better negotiating position.
In the end, the buyers did purchase the property. But they got a $5,000 price reduction during the home inspection contingency.
It was odd, and the seller had no strange twist for doing so. The house went under contract, and a few days later, my seller asked me to do a price drop. I thought I knew why, but I had never had that request. His reason? He dropped the price a few thousand dollars in anticipation of the buyer backing out during the home inspection period. The price drop was still higher than the agreed upon sales price, so it did not impact or negatively impact his bargaining position with regards to price. But, unsurprisingly, it raised eyebrows from the buyers. “Why on Earth is the seller reducing his price while we’re are under contract??” This is the only time I’ve seen it happen.
And it raised skepticism on the buyer’s part about why the seller made this move. There were some other things related to the contract that were contentious, and this just added fuel to the fire. The seller was just trying to prepare for the worst and who knows, maybe it put increased pressure on the buyer to move forward? I don’t think so in this case, but I certainly could see it other cases, maybe. It could also signal the seller is just desperate and give the buyer a better negotiating position.
In the end, the buyers did purchase the property. But they got a $5,000 price reduction during the home inspection contingency.