ChitownLiving | Chicago Real Estate + Life

Oooohhhhh, the drama.  The latest home sale pricing trend is termed “Drama Pricing”, best explained in a Boston Globe article this morning.

Coldwell Banker Residential Brokerage, Massachusetts’ largest real estate firm with more than 3,500 agents, is coaching agents on how to persuade clients to list their homes at an asking price that undercuts those of comparable ones on the market. The hope is low prices will attract more prospective buyers, leading to faster sales. Other real estate agents in the Boston area report success with similar strategies in a housing market with an unprecedented glut of properties for sale.

To reinforce the article, CNBC ran a story this evening regarding the topic.  To paraphrase NAR chief economist David Lereah, buyers and sellers have been in a “chessmatch”, with sellers sticking to their prices, only to find that buyers have been content to sit on the sidelines awaiting price drops.  Now sellers seem to be more flexible.  One agent interviewed stated that in the past, buyers were reluctant to present offers that might offend the seller.  Today, buyers have no issue submitting an offer 20% below market price.  Buyers need to perceive real value before making a move. In addition to seller concessions (pay closing costs, etc.) and buyer incentives (free Mini Cooper with purchase, etc.), “Drama Pricing” is one more way to create perceived value to drag buyers off the fence and into the ring.  Buyers, it may be a great time to put on the big boxing gloves, get into the ring, and create some drama.