Monday, April 7, 2014

A Home Price Reduction Gone Bad

Here is how a $30,000 mistake in a property advertisement can be damaging.......


First, I personally believe that more properties for sale should be increasing the price when not sold after a few weeks, by showing a new upgrade, improvement, or addition to easily justify the added cost. For example, the idea of “new $5,000 furnace” to justify a $3,500 price increase means that both buyer and seller benefit. (The buyer gets a “deal” on a new installation, while the seller appears to be adding more incentive.)


However, the home listed for sale at 5319 Clairidge Rd. in Knoxville TN was looking to show as a major price reduction, but something was lost in the translation. A national advertising web site shows this home as having just had a $30,100 price INCREASE instead.


The ad for this home, as it appears on a national web site, refers to “New heat pump”, and “full bathroom has been remodeled” within its brief description copy. A couple of the photos in the photo spread within the advertisement show a nice looking bathroom countertop and fixtures. But for an "additional" $30,100?


If I were a potential buyer looking at this property, I would be long gone by this point. There are many other homes in this community listed within a few thousand dollars either way of this price.


Yet, the “problem” is really that someone made a serious mistake with this advertisement. I do not know whether or not made the error or if this is how it was sent to them.


What happened is that the price of this home, per the data below on the property page on, was actually DECREASED by $30,000, even though it shows as if it was an increase of that amount.


What should be a major decision on the part of an obviously anxious seller is marred due to an error. An error which has gone unnoticed for more than 10 days.


If the selling agent and the seller of the property are not motivated to check all of the advertising, how is this property going to get sold? Or when?


This is another lesson for sellers and agents everywhere. Always check every advertisement every time. Don’t be another example of costing time and money.


No comments: