The Truth About Price Reductions: When (and When Not) to Lower Your Price in Southern California

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

From our experience, a price drop can be a smart, strategic decision—but it can also backfire if you act too soon or without fully understanding the situation. Before you make any cuts, let’s take a moment to assess what’s really going on and make a choice that aligns with your goals.

Let’s explore when a price reduction is a good idea—and when it’s not.

The First 7–10 Days Are Critical

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

Sometimes, the issue is pricing. But just as often, it’s about how the home is presented or how widely it’s being marketed.

If the photos don’t highlight your home’s best features, if staging wasn’t done effectively, or if the marketing didn’t reach the right audience—dropping the price won’t address the real issue.

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 rise from just a year ago. This increase reflects the more cautious buyer pool we’re seeing today. With higher interest rates and tighter budgets, buyers are taking their time and comparing options.

But here’s the key takeaway—homes that undergo multiple price cuts tend to sell for less than those that were priced correctly from the start. Frequent price reductions can send a message: something’s wrong with this property.

That’s not the impression we want associated with your home. Accurately pricing your home with your real estate agent's professional insights isn’t just a step; it’s a crucial strategy for a launch that attracts buyers, generates offers, and secures you the best possible price.

When a Price Reduction Makes Sense

There are definitely times when adjusting the price is the right call. Here’s when we’d suggest 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 in your area have sold—and yours hasn’t. If the comps are clear, buyers are comparing, and we’re out of sync.
• 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 these situations, a well-thought-out price adjustment—paired 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 problem.

Before we recommend any adjustment, we’ll ask:

• Was your home marketed to its full potential? High-quality visuals, compelling listing copy, and targeted exposure make a big difference. If those elements were lacking, we’ll address them first.
• Were showings easy to book? 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? We’ve seen sellers turn down strong offers just because they didn’t match the list price. The first offer often starts the conversation, not ends it. With the right counter and data-backed negotiation, we can still get you where you want to be.

Lowering the price too quickly, without adjusting your approach, can backfire. It's not just the price that matters; it’s how buyers perceive the value they’re getting.

What We Do Instead

Before making any moves, we take a step back and review everything:

• We assess the photography and staging. Are we showcasing your home’s strongest features?
• We analyze buyer feedback. What’s coming up in conversations or showing reports?
• We relaunch marketing if necessary. If the initial round didn’t gain traction, we’ll give it another go—with fresh eyes and renewed energy.

Sometimes, simply repositioning the listing—without changing the price—can make all the difference. We’ve had properties sell at full asking price after we updated the photos, revised the description, or adjusted our strategy for promoting the home. 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 made 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 priced appropriately from day one. This means that repeatedly lowering the price 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 explore all the options. Because reducing the price is usually a permanent decision.

Selling Smart in 2025

In this market, pricing is crucial—but it’s not the only tool in our toolkit. 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, your buyer feedback, and make a decision that makes the most sense for you.

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