DoorlarkHow to use it in the price conversation
- Get the carrying cost from the seller, not a guess. Mortgage payment, property tax and insurance divided by 12, HOA dues, utilities, and lawn or pool service if it's vacant. Most sellers have never added it up.
- Show the "months of carrying cost" line. A $15,750 cut sounds big. Shown as "about 5 months of what you're already paying to hold the house," it's a decision the seller can weigh.
- Look at the round-number marks. Buyers filter portal searches by price. A home at $509,000 doesn't show for anyone with a $500,000 max. Check the price filter steps on the portals your buyers use, and price just under the band you want to land in.
- Bring proof, not opinion. Pair the numbers with showings, online views and feedback since listing, plus what's gone pending nearby. Our price drop prompts turn those numbers into a 2-minute script for the seller and an announcement for your buyer list.
Worked example (the default numbers)
| $525,000 − 3% | $509,250 new price |
| $15,750 cut × (1 − 2.5% commission) | $15,356 less to the seller |
| $15,356 ÷ $3,200 a month | 4.8 months of carrying cost |
| Next $5,000 mark | $505,000 |
| Next $25,000 mark | $500,000 |
Example inputs, not typical figures for any market.
What this doesn't tell you
Whether the price is right. That comes from the market: recent sales, active competition and buyer response. Use this to show the cost of waiting once you and your seller agree the response hasn't been there. And keep any explanation of why the home isn't selling about the property, the price and the market, never about the neighborhood's people.
Related free tools and guides
- Seller Net Sheet Calculator: estimate what a seller walks away with, line by line.
- Commission Split Calculator: your take-home on one deal after referral fee, brokerage split, cap and fees.
- Expired listing prompts: for when the listing ran out before the price changed.
FAQ
How do I calculate a price reduction percentage?
Subtract the new price from the current price, then divide by the current price and multiply by 100. Going from $525,000 to $509,250 is a $15,750 cut, which is 3%.
How much should a price reduction be?
There's no standard amount we can point to. It depends on how far off the market the price is. A useful check is whether the new price lands in a lower search band where more buyers will see it, and what the cut costs compared with another month or two of carrying costs.
When should a seller reduce the price?
When showings, online views or feedback say the market isn't responding at this price. Set a review date when you list, so the conversation happens on schedule instead of after weeks of silence.
Does the commission go down with the price?
If it's a percentage of the sale price, yes. That's why the seller's net drops by a little less than the cut itself.
Does Doorlark save my numbers?
No. The calculator runs in your browser and nothing is sent to us.
By Doorlark Editorial Team. For planning only, not legal, tax or financial advice.