Price Reductions and Home Brochures
As homes are taking longer to sell now, the chance you might have to do a price reduction increases.
The home brochure is an important marketing tool for your home. The latest survey from the National Association of Realtors showed that fewer and fewer people are using the newspaper and magazines to find their home but the Yard Sign and Brochure is still being used the same amount as in previous years.
You don’t want your brochure to send wrong messages though. If you have a price reduction, a new brochure should be printed with the new price. You don’t want your agent to draw a line through the price and write “Priced reduced to $xxx” or something similar. I’ve seen stickers placed on the brochure saying “Now offered at $xxx” with the original price also still listed. This is not a good first impression unless you want to send the message that your home is not selling and make people immediate wonder what’s wrong with your home.
The reason why these methods are used is so the agent doesn’t have to spend more money on printing your home brochure. I can understand about an agent wanting to keep costs down but if you are paying $20,000 in commissions, having the agent spend another $100 for new brochures should be a given. It was the agent who agreed to list the home at a particular price so if they were unable to sell it, they should bear the financial responsibility of making sure the marketing of your home stays top-notch, even after a price reduction. If you are paying a discounted commission, then this level of service may not be included.
Make sure you discuss this with an agent before you sign the Listing Agent. Ask what happens if you reduce the price, so you know what to expect.