We all know that in most situations sellers are having to reduce the price of homes to get their property sold. However, there is a silver lining. Assume that a seller has to reduce their $400,000 home by 10% to get it sold and are interested in moving up to a $600,000 home. Selling their home @ $360,000 on the face of it shows a $40,000 loss. If you consider the $600,000 has to reduce by that same 10%, in actuality, there is a $20,000 positive difference in the two transactions. In a strong market, the seller would have sold their home for $400K but they probably would have had to pay $600K for the home they want to purchase.