Why a price reduction of $100?

Wow!  A price reduction of $100, 496 Williams Street went from $850,000 to $849,900.  The reason this is done is that so that the house/listing shows up again in several different areas, agent hotsheets, buyers who have registered at any number of sites will get it again due to the price reduction.  Basically the agent is trying to put a reminder in peoples inbox that this home is available.

In the past this sometimes has worked to get buyers to look at it again.  However in this market, with the amount of savvy buyers out there I doubt that it will do much.  We are currently seeing sold prices (on average) anywhere from 91% to 95% of asking price(unless truly priced competitively).  Buyers that are in the price range would have already seen the home, determined whether it was something they were interested in and made an offer.

Price reductions to encourage buyers to make offers need to be significant, at least 2-3% to draw valuable buyer interest.