Ever since we pointed out that $24,000 “drastic” price reduction, we’ve been wondering: what’s the difference between a “drastic”, “big”, “major” and “Huge” price reduction? Well, we now have answers!
Based on current listings, it appears that while a “drastic” price reduction is $24,000, a “BIG REDUCTION!” is $51,000, a “Major Price Reduction!” is $101,000, and a “Huge price reduction!!!” is $252,000. (Due to data limitations, however, we’re still unable to isolate how ALL CAPS and exclamation points play into the equation.)
And interestingly enough, the biggest reductions ($2,000,000) all seem to go unadvertised…
∙ Listing: 1452 Bush Street #21 – $1,149,000 [MLS]
∙ Listing: 1330 Chestnut Street – $1,149,000 [MLS]
∙ Listing: 2576-2580 Washington – $2,998,000 [MLS]
∙ Listing: 2700 Broadway – $12,500,000 [MLS]
Price reductions are relative in regards to price. No matter what adverb (or is it adjective) is used (i.e. Major, Huge, Drastic), pay attention to price and the percentage change.
My manager and author of Real Estate for Dummies, Ray Brown, recommends a 10% price reduction if your property isn’t selling.
ReyEstate
Great point, and in order to save everyone else the trouble in this case…
“drastic” = 3.4%
“BIG REDUCTION!” = 4.3%
“Major Price Reduction!” = 8.1%
“Huge price reduction!!!” = 7.8% (extra exclamation points actually subtractive?)
and unadvertised = 13.8%