Price Reduction Calculator
Compare what a price reduction costs against what another month of carrying an unsold property costs, and find the break-even point.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Holding out for the asking price is not free. Every month a property stays unsold costs the mortgage, taxes, insurance and upkeep, and that cost is invisible because it is spread across bills you were paying anyway.
The comparison is simple once both sides are on the same scale: a reduction costs a fixed amount once, and waiting costs a smaller amount every month. This works out how many months of waiting a given reduction is worth.
The comparison
A reduction costs the amount cut, less the commission you no longer pay on it. Waiting costs the monthly holding cost. Divide one by the other and you get the number of months of waiting the reduction is worth.
Worked example
On a 400,000 asking price, a 5% cut is 20,000. At 5% commission you save 1,000 of fees, so the reduction really costs 19,000. If holding the property costs 1,800 a month, the reduction pays for itself provided it sells the property about 11 months sooner. If you believe the cut brings a buyer within three months, waiting was the more expensive choice.
One meaningful cut beats several small ones
Portals highlight reductions, and a sequence of small drops signals to buyers that more will follow, which encourages them to wait rather than offer. A single decisive move back into the bracket where buyers are actually searching does more than three token ones.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
How long should I wait before reducing?
Judge it on viewings, not on the calendar. Steady viewings with no offers is a price problem near the top of the range; almost no viewings at all usually means the price has put you in the wrong search bracket entirely.
Does a reduction make buyers think something is wrong?
A large, decisive reduction rarely does — it reads as a motivated seller. Repeated small reductions do, because they teach buyers that waiting is rewarded, which is the opposite of what you want.
Should I include the mortgage principal in the holding cost?
For this comparison, no. Principal is equity you keep either way, so counting it overstates the cost of waiting. Use interest, taxes, insurance, utilities and upkeep.