“Let’s price it so that we have room to negotiate.”

When I hear that from a client, it is almost certain that we will be negotiating……with each other to lower the price. In today’s buyer’s market, where there are so many homes to choose from, the homes that sell are those that win the price war and the beauty contest. Buyers comparison shop. If a home is overpriced, it is competing with a location and level of finishes a step above it. It will automatically lose that competition. On the other hand, if the home is priced right, is presented beautifully, and is the “obvious choice”, it will win the competition and sell.

In a buyer’s market, time is not on the seller’s side. The longer a home sits on the market, the more likely the price of the listing will need to be reduced. In addition, buyers will wonder why the home has been on the market for a long time and are more likely to write “low ball” offers.
Here is a real example of homes sold this year in the Ranch Place neighborhood:

AddressDays on MarketRation Final Sale/List Price
1086 Abilene Way1992%
1841 Browning Court10797%
1882 Browning Court3395%
1041 Cutter Lane898%
951 Cutter Lane194%
931 Cutter Lane20793%
1194 Angus Court7100%
1056 Abilene Way44698%

All of these homes sold at 93-100% of list price, once the list price was the right price. The homes that were priced right sold faster. The homes that were overpriced sold at the same price they were going to sell at anyway (or less) but they took longer to sell.

Wondering about the price of your home?  Click the “How Much is Your Home Worth” button on the right.

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