The Truth About Price Reductions: When (and When Not) to Lower Your Price in Southwest Washington

If your home is on the market in Southwest Washington and you’re not seeing any offers, it’s only natural to start considering a price reduction. This is often the first suggestion sellers hear from friends and family. But is it the right move for you?

From my experience, a price drop can be a smart, strategic decision—but it can also backfire if done prematurely or without a comprehensive understanding of the situation. Before you make any drastic changes, let’s take a step back, assess what’s really going on in the market, and determine the best course of action that aligns with your goals.

Let’s explore when a price reduction makes sense—and when it might not be the best idea.

The First 7–10 Days Are Critical

When your home first hits the market, that’s when it garners the most attention. It appears in saved searches and catches the eye of motivated buyers who’ve been waiting for the right opportunity. If your listing doesn’t gain traction during this initial window, it’s usually a sign that something isn’t quite right.

Sometimes the issue is indeed pricing. However, just as often, it’s about presentation or exposure. If the photos don’t highlight your home’s best features, if staging wasn’t optimized, or if the marketing strategy didn’t reach the right audience—dropping the price won’t resolve the underlying problem.

That’s why we always take a strategic approach, especially during those first critical days.

What the Data Is Telling Us

We’re not alone in noticing an uptick in price reductions lately.

According to Redfin, 24.3% of listings had at least one price drop in March 2025—a significant increase from the previous year.

But here’s the key takeaway—homes that experience multiple price cuts often sell for less than those that were priced correctly from the start. Price reductions, if implemented too late or too frequently, send a message: something’s off with this property.

That’s not the impression we want associated with your home. Accurately pricing your property with the help of your real estate agent's insights isn’t just a step in the process; it’s a crucial factor in launching your home effectively, attracting offers, and securing the best possible price.

When a Price Reduction Makes Sense

There are definitely times when adjusting the price is the right move. Here’s when we’d recommend it:

• You’ve had consistent showings, but no offers. This often indicates that buyers see the home as a fit—but not at the current price.
• Similar homes nearby have sold—and yours hasn’t. If the comparable sales are clear, buyers are making comparisons, and we might be out of alignment.
• The original list price was more aspirational than strategic. This can happen, especially if you launched with hopes based on last year’s market highs.

In those situations, a well-considered price adjustment—coupled with a fresh marketing push—can help reignite interest and get your listing back in front of serious buyers.

But…

When You Should Hold the Line

Sometimes, it’s not about the price. Dropping it won’t fix the underlying issue.

Before we recommend any adjustments, we’ll ask:

• Was your home marketed to its full potential? High-quality visuals, compelling listing descriptions, and targeted exposure make a significant difference. If those elements were lacking, we’ll address them first.
• Were showings easy to schedule? If buyers couldn’t get in—or had limited availability to view the home—we may not have seen the full demand yet.
• Were early offers dismissed too quickly? I’ve seen sellers turn down strong offers simply because they didn’t match the list price. But the first offer often starts the conversation, not ends it. With the right counter and data-backed negotiation, we can still reach your desired outcome.

Lowering the price hastily, without adjusting your approach, can backfire. It’s not just about the price; it’s about how buyers perceive the value they’re getting.

What We Do Instead

Before making any moves, we take a moment to audit everything:

• We review the photography and staging. Are we showcasing your home’s strongest features?
• We analyze buyer feedback. What insights are emerging from conversations or showing reports?
• We relaunch marketing if necessary. If the initial round didn’t gain traction, we go again—with fresh perspectives and renewed energy.

Sometimes just repositioning the listing—without changing the price—can make all the difference. We’ve had properties sell at full asking price after updating the photos, refining the description, or altering our promotional strategy. It’s not always about the price. It’s about how the home is presented.

The Real Cost of Overcorrecting

If a price drop is executed too steeply—or more than once—it can send the wrong signal.

In fact, a 2024 NAR report found that homes with multiple price reductions sold for 6.7% less on average than homes that were priced appropriately from day one. This means that reducing the price repeatedly can lead to a lower final sale price than simply pricing it right (and being patient) from the start.

So before we touch that list price, we’ll consider all options. Because reducing the price is often a permanent decision.

Selling Smart in 2025

In this market, pricing is crucial—but it’s not the only tool we have at our disposal. The goal isn’t just to sell; it’s to sell with confidence, clarity, and the best possible outcome for your next move.

If you’re feeling uncertain about what to do next—or wondering whether a price drop is the right step—we’d be happy to discuss it with you.

Let’s evaluate your home, your market, and the feedback we’ve received from buyers to make the decision that makes the most sense for you.

Your home deserves a thoughtful plan—not a reaction driven by panic.