Buyers: How motivated are you by a price cut? (FL) (1%, comparable)

[FLKitties]

I'm operating under the assumption that most buyers are searching based on search criteria of prices such as $x00/x25/x50/x75 and we're not able to drop into a new bracket. Property is in Florida so new pools of buyers are frequently entering the market. That being said, would a $3k price cut on a high $300s home magically make you more interested in a home? Or would you have already gone and seen the house and just offered $3k or whatever less if you didn't think it was worth the asking price? Thank you in advance for any insight.

[Electrician4you]

I base my purchase on location, aaa, age, shape and price. I’m not gonna rush to buy a cheap house if it’s trashed

3,000 buck drop in realestate language means fishing with bait on a hook

[JonahWicky]

You're talking about a <1% price reduction. That's a drop in the bucket when buyers typically offer 5% to 10% below asking price. It wouldn't make any difference to me.

[MikeJaquish]

A price cut often tells buyers that the sellers won't cut any further until they feel pain of the house setting on the market for another period of time.

I.e.:
List price, $400,000.
Actual comparable value, $380,000.
House sits for a while. Price cut to $395,000.

Buyers offer market value, $380,000.

Seller claims petty insult, "Tell them we just cut the price $5,000!"

[Diana Holbrook]

The advantage in a price drop is you drop into the budget of someone who wasn't looking or didn't see it before because of price.

I don't think $3000 is enough difference to attract a buyer who wasn't interested anyway. You're still in the reasonable offer range on the original price.

[carnivalday]

You pretty much hit the nail on the head with your initial observation. I have a friend looking for a home now, she's been looking for several months. She has a price criteria, and thats the parameters when she does a search. If a home doesnt fall within those parameters, she doesnt see it. Less than 1% drop is nothing, likely no one will even notice.

[charlygal]

Originally Posted by MikeJaquish

A price cut often tells buyers that the sellers won't cut any further until they feel pain of the house setting on the market for another period of time.

I.e.:
List price, $400,000.
Actual comparable value, $380,000.
House sits for a while. Price cut to $395,000.

Buyers offer market value, $380,000.

Seller claims petty insult, "Tell them we just cut the price $5,000!"

I've seen the scenario where house sits at $400k for over a week. Price drops to $395k and house sells in 24 hrs. It seems many had the top end search of <$400k. Anything equal to $400k was missed by the intended market and the search engine.

[GiantRutgersfan]

Anything less then $10k doesn’t do much of anything for me.

[turkeydance]

well, we are confused.
is the OP the buyer or seller?

if buyer...no. not near enough.
if seller...yes. cannot get what you want.

[jghorton]

My observation has been that many periodically reduce the asking price in small (often meaningless) increments ... in order to move a stale listing into the "price reduced" category.