Coldwell Banker is unveiling it’s “10 day sales event” that will publicize sales reductions of up to 10 percent on its listings from Oct. 10 to Oct. 19. Sellers have the option of participating in the promotion.  This is being done to “boost the sagging U.S. home sales market.”

Ok.  What does this mean.  Coldwell Banker agents will go to their sellers and ask them to reduce the price on their home by 10% for 10 days.  If they are doing that, then the home is most likely over-priced to begin with. 

This is not much more than a marketing gimmick.  I say this, because it is the homeowner, not Coldwell Banker, who has to agree to a price reduction, or essentially take less money for their home in a sale.   If it won’t sell to begin with, it is probably over-priced.  As a seller, would you be willing to walk away from 10% of the money you deserve from your home, just to participate in Coldwell’s program to “boost the sagging home sales market” if it is already priced right? 

What benefit would the seller get out of it?  They will get a pat on the back a thanks from Coldwell Banker and a chance to say they participated in this program. That isn’t much incentive to a seller to lose 10% in a sale. 

Just because the price would be reduced by 10% doesn’t mean it will become a good buy either. 

The article says Coldwell Banker is, “Swiping a page from the car dealership playbook.” the only problem is Coldwell doesn’t own the cars, so it isn’t Coldwell’s decision to be able to sell a home below market value like the car dealers claim.  It is the seller’s decision, so it becomes little more than a marketing ploy.

There’s also a potential downside. For instance, imagine someone with a house listed at $250,000 drops the price by 10 percent, or $25,000, during the 10-day promotion but gets no offers and then reverts to the original list price.

The seller would have a hard time justifying the higher price if an interested buyer came along a month later and offered $225,000.