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

If your home is on the market in Southern Ontario and you’re not seeing any offers, it’s understandable to start considering a price reduction. It’s often the first suggestion sellers hear. 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 too soon or without fully understanding the situation. Before you make any cuts, let’s take a step back, evaluate what’s really going on, and determine the best course of action for your goals.

Let’s explore when a price reduction makes sense—and when it doesn’t.

The First 7–10 Days Are Critical

When your home first hits the market, that’s when it garners the most attention. It shows up 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 early window, it’s usually a sign that something isn’t quite right.

Sometimes the issue is indeed the price. 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 fix the underlying issue.

That’s why we always advocate for a strategic approach, especially during those first crucial days.

What the Data Is Telling Us

It’s not just me noticing an uptick in price reductions lately.

In Canada, CREA data indicates that roughly 30% of listings in early 2025 were reduced before selling, particularly in higher-priced urban markets where buyers have more options available to them.

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 outset. Price reductions, if executed too late or too frequently, send a message: something’s wrong with this property.

That’s not the impression we want associated with your home. Pricing your property accurately, with the help of your real estate agent’s professional insights and guidance, isn’t just a step; it’s a crucial strategy for launching your listing 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 call. Here’s when we’d recommend it:

• You’ve had consistent showings, but no offers. This often indicates that buyers see the potential but not at the current price.
• Similar homes nearby have sold—and yours hasn’t. If the comparable sales are clear, buyers are likely comparing, and we may 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 these scenarios, a well-considered price adjustment—combined 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 necessarily resolve the issue.

Before we recommend any adjustments, we’ll ask:

• Was your home marketed to its full potential? High-quality visuals, compelling listing copy, and targeted exposure make a significant 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? I’ve seen sellers turn down strong offers simply because they didn’t match the list price. The first offer often starts a 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 overall approach, can backfire. It’s not just the price that matters; it’s how buyers perceive the value they’re receiving.

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 look at 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’ll try again—with fresh eyes and renewed energy.

Sometimes simply repositioning the listing—without altering the price—can make all the difference. I’ve seen properties sell at full asking price after we updated the photos, revised the description, or changed our promotional strategy. It’s not always about the price; it’s about how we present the property.

The Real Cost of Overcorrecting

If a price drop is made too steeply—or happens 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 reducing the price can lead to a lower final sale price than simply pricing it right (and being patient) from the start.

So before we adjust that list price, we’ll explore all available 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 we have. 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.

Let’s take a look at your home, your market, and your buyer feedback, and make the decision that makes the most sense for you.

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