A price reduction isn’t automatically a bargain
By Jo Wright, Real Estate Broker · Right At Home Realty, Brokerage ·
A listing drops in price and suddenly it feels more interesting.
Understandable. We all enjoy a reduction. But a house isn’t a winter coat, and the little number crossed out beside the price doesn’t tell us whether it represents good value.
Start with today’s asking price
The useful question is how the property compares with suitable alternatives now.
Was the original asking price ambitious? Have competing homes changed? Does the property need work that buyers are factoring into their decisions?
A reduction can bring a home closer to the market. It doesn’t automatically take it below the market.
Compare the right properties
A nearby sale is a starting point, but the details matter: property type, lot, condition, parking, layout and location.
A beautifully renovated house and a similar-sized house needing substantial work may sit on the same street. That doesn’t make them interchangeable.
Recent comparable sales, current competition and the property’s history help build a more useful picture than the size of the reduction alone.
Look beyond the purchase price
Consider the work you might need to do, the running costs and whether the home suits your plans.
A lower price can lose its appeal quite quickly if the layout doesn’t work and changing it will be expensive.
Equally, a property that has been overlooked might deserve another look. The aim is to understand the opportunity without assuming we know the seller’s circumstances.
I’d rather help you make a sensible purchase than celebrate a dramatic discount from a price nobody was prepared to pay.
The question you should have asked: Is this home good value at its current price, compared with my realistic alternatives?
Send me the listing that’s caught your eye and we can look at the details.
Jo Wright, Real Estate Broker
The Wright Move Team | Right At Home Realty, Brokerage
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