When to Do a Price Reduction in 2026 (And When It's the Wrong Move)

If your home has been sitting on the market without offers, the first suggestion you'll probably hear is: "We should drop the price."

It's the most common response in the industry. And honestly? Sometimes it's the right one.

But here's what bothers me — and I'll be direct about it: in a lot of cases, a price reduction is the only tool an agent reaches for because it's the easiest one. It's easier than going back and doing the marketing right. It's easier than admitting that corners were cut when the home was brought to market. And it costs the seller — not the agent — real money.

Before we talk about when a price reduction makes sense, I want to be honest about something the industry doesn't say loudly enough.

The Problem Nobody Talks About

There's a pattern I see constantly in this market. A seller lists their home. Showings are slow. Weeks go by. The agent's answer? Lower the price.

But the real question that should be asked first is: did this home ever actually have a shot?

Was the photography professional and compelling? Did the listing copy speak to the right buyer? Was the home staged — or at least decluttered and prepared — to show at its best? Was the marketing reaching beyond just throwing it on the MLS and hoping?

If the answer to any of those is no, then you didn't have a pricing problem. You had a presentation and exposure problem. And reducing the price doesn't fix that. It just means you're now selling an undermarketed home for less money.

That's not a strategy. That's a shortcut that the seller pays for.

What the Data Is Telling Us

This isn't a small issue. The trend toward price reductions has accelerated significantly.

Nationally, by the end of 2025, roughly 39% of all listings saw at least one price reduction — up sharply from 24% just a year earlier. In Q4 2025 alone, about 18% of existing home listings carried a price cut, according to Realtor.com.

Here in Roseville and Placer County, the picture is more nuanced — and actually more favorable than the broader Sacramento market. As of February 2026, the Roseville median sale price was $626,000, down about 3.7% year-over-year, with homes averaging 31 days on market compared to just 12 days the year before. That's a real shift in pace — but it's not a broken market.

Compare that to Sacramento proper, where prices were running 5–6% below last year in mid-2025. Placer County has held steadier, and that's not an accident. The buyer pool here — relocating Bay Area families, move-up buyers, professionals drawn to the quality of life in communities like West Park, Winding Creek, and Morgan Creek — is more resilient than the broader metro average. But they're also pickier than they've been in years.

Sacramento appraiser Ryan Lundquist put it well in a February 2026 market update: homes that are getting into contract are priced realistically for their condition and competition. The ones that aren't? They're sitting. And the gap between original list price and final close price in this market is running around 5.8% on average — meaning overpriced homes aren't just sitting longer, they're ultimately selling for meaningfully less.

One more data point worth noting: Redfin's research found that sellers who price too high, then drop, risk signaling weakness to the market. Once a listing accumulates days on market and a visible price cut, buyers start wondering what's wrong — even when nothing is.

The data is consistent: homes priced right from the start outperform homes that chase the market down.

A Story That Stayed With Me: Jason and Diana

This is exactly why I think about pricing — and marketing — the way I do.

Jason and Diana were trying to downsize and eventually relocate out of state. To make that next chapter work financially, they needed to sell their home for top dollar. They listed with their previous agent — the one who had helped them buy the home — and after 47 days on the market, they had almost nothing to show for it. Barely any showings, no offers, and no clear explanation for why.

They pulled the listing entirely. They were frustrated, second-guessing everything, and honestly a little defeated.

They had met me briefly at an open house, so they reached out for a second opinion. When we sat down, I walked them through the five factors that actually drive a successful sale — presentation, online marketing, exposure, pricing, and timing. We looked honestly at where things had broken down and built a plan around that.

Here's the important part: we didn't have to drop the price.

We improved how the home was presented. We overhauled the marketing. We made sure the listing was reaching the right buyers, not just sitting in a database. When we re-listed, the activity was immediate. They had a full-price offer in 6 days.

For Jason and Diana, the result was meaningful — they got what they needed to move forward. But what they told me mattered most wasn't even the sale price. It was finally having a clear plan and understanding what was actually happening at every step.

That's what a price reduction can never give you. It's not a plan. It's a reaction.

When a Price Reduction Makes Sense

I want to be clear: I'm not against price reductions. Sometimes they're absolutely the right move. Here's when I'd recommend one:

You've had consistent showings, but no offers. If buyers are coming through and walking away, they're telling you the home shows well — but the price doesn't match what they're seeing. That's genuine market feedback, and it deserves a response.

Comparable homes are selling and yours isn't. If the comps are clear and your home is the outlier, the market has already set the price. It's better to move decisively than to bleed days on market.

The original pricing was more aspirational than strategic. It happens. 2022 and early 2023 set some expectations that this market simply won't support anymore. A well-calculated adjustment paired with a fresh marketing push can reset the conversation.

In those cases, a price reduction — done once, done right — can absolutely work. The key words are once and right. Multiple reductions compound the problem by reinforcing buyer skepticism with every cut.

Before We Touch the Price, We Ask These Questions:

At The Goolsby Group, a price reduction is never the first answer. Before we recommend any adjustment, we do a full audit:

Photography and presentation. Are we leading with the home's strongest features? Does the listing stop a buyer mid-scroll, or does it blend in?

Buyer feedback. What are showing agents reporting? What's coming up in conversations? Feedback is data.

Marketing reach. Was the home just posted to the MLS, or was it actively promoted to the right buyer pools — relocation buyers, move-up buyers, people specifically targeting Placer County neighborhoods?

Showing access. Were buyers actually able to get in? Difficult scheduling kills momentum in ways that never show up in the price conversation.

Early offer handling. Were any offers dismissed too quickly? The first offer isn't always the final number — it's the start of a negotiation. With the right counter and data-backed strategy, there's often more room than sellers initially think.

If any of those elements were missing or underperformed, we fix them first. We've had homes sell at full asking price after updating photography, reworking the listing description, or changing how we were promoting the property. Sometimes a relaunch — with no price change at all — is the move.

The Real Cost of Getting This Wrong

Here's what I wish every seller in Roseville and Placer County would understand going into Summer 2026:

This market is more balanced than it was in 2021 and 2022. Inventory is up. Buyers have more choices and they know it. They're taking longer to decide, and they're comparison shopping carefully.

That means first impressions matter more than ever. A listing that launches with strong presentation, strong marketing, and a realistic price has every opportunity to succeed — and the data backs that up. A listing that launches flat and then chases the market down with price cuts is starting from a disadvantaged position that's hard to recover from.

The goal isn't just to sell. It's to sell with confidence — knowing you gave your home every possible advantage, and that the number you walked away with reflects what the home was truly worth.

Thinking About Selling This Year?

Whether you're downsizing like Jason and Diana, moving up, or planning a relocation, I'd love to sit down and walk through the five factors that drive a successful sale in this market — and build a plan that's specific to your home and your goals.