Price Cuts ≠ Deals: How to Read Cumulative Reductions the Right Way
A “$50K price drop!” headline can be bait—or a real opportunity. Here’s how I read it.
Strategic cuts look like stair-steps that track feedback and seasonality (e.g., a tidy 2–3% trim after two weekends, then another before month-end). Distress looks different: a sharp slash after 30–45 DOM, “as-is” language, vacant photos, or a big gap vs nearby pendings. Translation: the cut is a signal, not the answer—your leverage comes from context.
How I comp it: I anchor to pending data first (where the market is going, not where it’s been). I look at the last list price at the time of contract, cumulative reductions, days to go pending, and whether similar homes needed credits to appraise/close. Then I structure offers accordingly: start with seller credits, layer a 2-1 buydown, and focus inspection asks on roof/HVAC/sewer/drainage. If the numbers won’t pencil—even after credits—walk.
Market pulse (Denver, today): 30-year fixed sits around 6.19%. October median sale price about $614K with roughly 45 DOM citywide; November pace eased with 38 median days in MLS across the metro. Translation: leverage is real on 30–70 DOM listings; aim for credits over chasing list-price wins.
Actionable tip: When a listing shows multiple reductions, ask the agent for the last 2 weekends’ showings + offers and whether they’re covering rate buydowns—then write your credits to match their pain points.
— Andy
Vail Peak Realty | Park Hill resident & neighborhood guide
#DenverRealEstate #MarketPulse #BuyerTips #Negotiation #VailPeakRealty #CreditsNotCuts
