If your home is still on the market it’s probably priced too high

If your home has been for sale for more than 100 days you're probably tired of looking at the for-sale sign in your front yard. If you want to sell your property now and get on with your life, pay close attention: Your price is too high!

In good markets or bad, price is the key factor in selling a home. Regardless of location or condition, any home will sell at the right price.

Properties that sell fastest sell closest to list price.  Those that are on the market longer sell for much less than those which were priced realistically when it was first placed on the market. This is especially true in a declining market, such as we have had.

Pricing a property is a complex exercise.  Many factors are considered in preparing a comparative market analysis, and of these, experience is the most important. When sellers ignore a properly-prepared CMA and insist on listing their property more than 2% above recent closed sales, they are making a big mistake which will ultimately cost them dearly.

Realtors do not determine market value. Neither do sellers. Market value is the amount a buyer is willing to pay and a seller is willing to accept for a specific property. Sellers should never price their homes based on what other sellers are asking. The only prices that matter are those of comparable homes that have recently sold.

Buyers want a good deal, and will not knowingly pay too much. They are selective and price-conscious, and look at many propertiesbefore making a decision. The property they eventually choose will be the one which gives them most of their want and needs at a price they perceive to be fair market value, and in this kind of market, what they consider a "deal".

Some sellers believe it's easy to get market price, and that a Realtor's job is to sell the property for whatever the seller wants or needs. Some believe if they wait long enough, a buyer will come along who is smart enough to have the money and income to buy the house and too dumb to know it's overpriced. Not likely. Buyers also want to see a market analysis.

A common seller statement is "we're in no hurry; we'll just leave it on the market until we get our price." In fact, the longer a home is on the market the less likely a seller will receive asking price.

Some sellers say "If my price is too high, buyers can always make an offer." True, but they usually won't. Many realtors won't show overpriced homes, except maybe to convice clients what a good deal a competing property is.

Sellers often tell their agent that they must sell at a certain price because they need the money. Real Estate Economics Law #1 is that "a seller's need for money does not increase the market value of the home." If you were a buyer, would you pay a premium for a home just because the seller needs more money?

Sellers often say, "Couldn't we just try it for a couple of weeks?" Of course they could, but 90 percent of the showing and previewing activity happens in the first two weeks. These buyers are looking for a specific house and are called by their realtor to see the new listing. They need to be captured, as they are probably the best buyers.

When a property hasn't sold, sellers think their agent is not exposing the property to enough buyers. No matter how much exposure their home gets, it won't sell if it's overpriced, and if it did, it probably would not appraise.

Pay attention to the pricing of your home. The long market time will cost you thousands of dollars that rightly belonged to you.