Should You Reduce Your Asking Price or Wait? | Ontario Home Sellers

by Ana Bastas

Should You Reduce Your Asking Price or Wait?

A price reduction can be a powerful selling strategy — but only when there's a reason behind it.

By Ana Bastas, ABR®, SRS®, SRES®, RENE®
Founder & Team Lead, Ana Bastas Real Estate Team
Real Broker Ontario Ltd., Brokerage
Serving Halton, GTA, Hamilton & Niagara Region
Real Estate Professional Since 2012

Your home has been on the market longer than you expected.

Maybe you're getting showings but no offers.

Perhaps activity has slowed.

Or maybe you've watched another property down the street sell while yours remains available.

Eventually, almost every seller in this situation asks the same question:

"Should we reduce the price?"

My answer isn't automatically yes.

And it isn't automatically no.

A price adjustment can be one of the most effective tools we have when selling a property.

But I don't believe in reducing a home's price simply because we're frustrated, nervous or because a certain number of days have passed.

There should be a strategic reason for doing it.

The real question isn't:

"Should we lower the price?"

It's:

"What is the market telling us, and would changing the price improve our position?"

1. Days on Market Alone Shouldn't Make the Decision

There is no universal rule that says:

7 days = reduce.

14 days = reduce.

30 days = reduce.

Different homes have different expected selling periods.

A starter townhouse in Milton may behave differently than a luxury property in Oakville.

A Burlington condominium may have a different buyer pool than a rural property in Niagara.

Even two homes within the same neighbourhood can experience different demand depending on price, condition, layout and features.

So while days on market matter, they need context.

I want to know how long comparable properties are taking to sell — not simply how many days our listing has been available.

2. Ask Whether Buyers Are Seeing the Property

Before changing the price, I want to understand where the problem begins.

Are buyers seeing the listing online?

If not, we may have an exposure or marketing issue.

Are buyers seeing it but not booking showings?

Now we may have a presentation or positioning issue.

Are they booking showings but not offering?

That's a different conversation again.

Think about the buyer journey:

They see it → They click it → They book it → They view it → They consider it → They offer.

Where are we losing them?

That question can tell us far more than days on market alone.

3. Look at What Has Sold Since You Listed

Active listings tell us what other sellers are asking.

Sold properties tell us what buyers actually agreed to pay.

That's why I pay particular attention to sales that happen after we enter the market.

Suppose we listed your home at $1,199,000 based on the best comparable information available at the time.

Then two similar properties sell for approximately $1,100,000.

That is new information.

It doesn't automatically determine your home's value because no two properties are identical.

But it absolutely deserves consideration.

The market may be establishing a range that wasn't as clear when we initially listed.

4. Look at What's Happening to Your Competition

Sales aren't the only thing I watch.

What are competing sellers doing?

Are they reducing their prices?

Are listings terminating?

Are homes being relisted?

Is new inventory entering below us?

Are comparable properties selling?

Imagine we listed at $1,249,000 and were initially one of three comparable homes.

Two weeks later, there are eight.

Several are priced below us.

Even if our home hasn't changed, our competitive position has.

That's one of the strongest reasons to continually reassess a listing rather than treating the original strategy as permanent.

5. Listen for Patterns in Buyer Feedback

One buyer saying your price is high doesn't mean your price is high.

Buyers would naturally prefer to pay less.

But if buyer after buyer independently reaches a similar conclusion, I pay attention.

For example:

"Beautiful house, but we think it's priced high compared with the other one."

"We'd consider it closer to..."

"They liked it but felt there was too much work at this price."

One comment is an opinion.

Repeated comments, combined with market data, can become evidence.

I don't price a property based on feedback alone, but I don't ignore consistent feedback either.

6. Consider Your Own Timeline

Pricing strategy isn't only about the property.

It's also about you.

Suppose Seller A has already purchased another property and closes in 30 days.

Seller B is downsizing but has no deadline.

Those two sellers may make very different decisions even if their properties are experiencing similar market activity.

Carrying costs also matter.

Mortgage payments.

Property taxes.

Condo fees.

Insurance.

Utilities.

Bridge financing.

Maintenance.

Every additional month on the market can have a cost.

Sometimes waiting for another $10,000 doesn't make financial sense if carrying the property for several additional months costs nearly as much.

That calculation should be part of the decision.

7. A Price Reduction Should Change Something

This is one of the most important principles.

If we're going to change the price, I want the new price to accomplish something.

A reduction shouldn't simply allow us to say:

"We reduced."

It should improve our competitive position.

Perhaps it places us below a major buyer search threshold.

Maybe it positions us more favourably against a competing property.

Perhaps it reflects new comparable sales.

Or it may bring us into a range where buyer activity is demonstrably stronger.

The question I ask is:

"What will be different tomorrow because we changed this price today?"

If the answer is "probably nothing," then we need to reconsider the strategy.

When Waiting May Make Sense

There are circumstances where patience may be the stronger decision.

You're Receiving Serious Interest

If buyers are booking second showings, asking detailed questions or actively considering the property, we may not want to make an immediate change.

Comparable Properties Aren't Selling Either

If the entire market segment is moving slowly, reducing your price prematurely may not solve the underlying issue.

Your Price Is Still Supported by Current Evidence

If recent sales and active competition continue to support the asking price, additional market time may be appropriate depending on your circumstances.

There's a Short-Term Timing Issue

Long weekends, holidays, severe weather or other temporary factors can affect buyer activity.

I wouldn't necessarily make a major pricing decision based on a few unusually quiet days.

Your Timeline Allows Patience

If you aren't under pressure to sell and the carrying costs are manageable, you may have more flexibility.

Waiting can be a strategy — when there's evidence supporting the decision to wait.

When I Would Seriously Consider a Price Adjustment

There are also situations where the evidence becomes increasingly difficult to ignore.

For example:

Comparable homes are selling while yours isn't.
Buyers consistently identify price or value as an objection.
You're receiving strong online exposure but very few showings.
You're receiving many showings but no serious interest.
New competing listings are offering more for less.
Recent sales no longer support your original position.
Your timeline has become more urgent.
Your carrying costs make waiting increasingly expensive.

When several of these factors appear together, it may be time for a different conversation.

The Danger of Chasing the Market Down

One reason pricing decisions matter is that sellers don't want to continually follow the market downward.

Imagine a market where competing properties begin reducing.

A seller waits.

Then reduces slightly.

The competition reduces again.

The seller waits again.

Eventually the property may be priced where it should have been weeks earlier — except now it has accumulated significantly more days on market.

This doesn't mean you should panic and reduce at the first sign of changing conditions.

It means timing matters.

When the evidence clearly supports an adjustment, acting strategically can be better than repeatedly making small reactive changes.

What About a Small Price Reduction?

Sometimes sellers suggest:

"Let's just reduce it by $5,000 and see what happens."

Depending on the price point, that may accomplish very little.

If a $1.2 million property becomes $1.195 million, does that materially change how buyers compare it?

Maybe.

Maybe not.

But if changing the price moves the property into a different buyer search bracket or creates a meaningful advantage against the competition, the impact may be greater.

This is why I prefer strategic price adjustments rather than cosmetic ones.

The amount should be based on what we're trying to accomplish.

Don't Confuse Your Asking Price With Your Negotiating Position

Sellers sometimes worry:

"If I reduce the price, buyers will just offer even less."

Not necessarily.

Your asking price is part of your marketing strategy.

Your negotiating position is determined by many factors, including buyer interest, competing offers, conditions, closing dates, deposit structure and your own circumstances.

A strategically priced property can sometimes generate stronger buyer engagement than one positioned above the market.

The objective is to create an opportunity for negotiation in the first place.

You need interested buyers before you can negotiate with them.

What I Tell My Sellers Before We Change the Price

Before making a price adjustment, I want to be able to answer four questions:

What has changed since we originally listed?
What evidence suggests the current price isn't working?
What specifically will the new price accomplish?
Does the adjustment align with the seller's timeline and financial objectives?

If we can answer those questions clearly, we're making a strategic decision.

Not an emotional one.

Frequently Asked Questions

When should I reduce the price of my house?

There is no universal timeframe. Consider recent comparable sales, current competition, showing activity, buyer feedback, market conditions, carrying costs and your selling timeline.

How much should I reduce my house price?

The amount should be strategic rather than arbitrary. A useful adjustment should meaningfully improve the home's position relative to competing properties or potentially expose it to a different buyer search range.

Will a price reduction make buyers think something is wrong with my home?

Not necessarily. Price adjustments are common in real estate and can reflect changing market conditions or a revised selling strategy.

Should I wait longer if I'm getting showings?

Possibly. Strong showing activity can justify additional time, particularly if buyers are demonstrating serious interest. However, repeated showings without offers should eventually be evaluated alongside feedback and competing sales.

Is it better to price high and reduce later?

Not necessarily. Starting too high can cause a property to miss buyers during its initial launch. The appropriate strategy depends on the property and market conditions.

Should I reduce my price before a long weekend?

Not automatically. If buyer activity is temporarily affected by a holiday, it may make sense to assess the market again afterward unless other evidence already supports an adjustment.

Price Reductions Should Be Strategic, Not Emotional

Selling a home can be stressful.

When days pass without an offer, it's easy to feel pressure to do something.

But activity isn't the same as strategy.

Sometimes the right decision is to change the price.

Sometimes it's to change something else.

And sometimes it's simply to give the market more time.

The important thing is understanding why you're making the decision.

If you're currently wondering whether you should reduce your asking price or wait, I can help you review your listing against the current market and determine what the evidence is telling us.

Book your personalized Home Selling Strategy Consultation.

Ana Bastas, ABR®, SRS®, SRES®, RENE®
Founder & Team Lead | Listing Specialist
Ana Bastas Real Estate Team
Real Broker Ontario Ltd., Brokerage
Serving Halton, GTA, Hamilton & Niagara Region
Real Estate Professional Since 2012

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