Speaking of the Oracle, how did you like his price reduction?
He was listed at $11,000,000 for 19 months with no adjustment, and then drops the price by 28% to $7.9 million?
Is it a good strategy to drop that much, all at once?
It would be, if you were convinced that it would work. What must have happened for the 3rd richest guy in the world to dump like that?
- Listing was very stale.
- They haven’t had any action. Few, if any, showings, and no offers.
- Agent was confident and recommended ‘hanging in there’.
- Seller recognized that something drastic was needed.
Warren probably suggested the dump – listing agents wouldn’t go that far.
But what will buyers think? Will they jump on it now?
There was a local property that dropped 14% this week, and my interested buyer said, “I can’t wait to see what they do next month!”
There is shock-and-awe effect with a big price reduction, but there’s no guarantee it will work. If it doesn’t, then in Warren’s case he just blew $3,100,000 – and you’re begging buyers to take the chance that it doesn’t sell.
I’ve recommended price reductions of 5%, which would still get attention. If Warren did that every week, it would hold the buyers’ attention better too. They would be reminded – and encouraged to step up – every few days.
Are you going to remember his reduction a week from now? If you do, and it still hasn’t sold, it will be a reminder that it didn’t work!
He’ll need to lower it again!