Price Compellingly Only If You Want To Sell
It took a while, but it seems that just about everyone in the North Shore real estate community now understands the concept that if a property is offered at a compelling price, it will sell quickly and relatively close to that price.
Many homeowners on the North Shore are still a little slow to accept this concept. We would go as far as to say that if you don’t price it well to begin with, it is highly probable that it will eventually sell at a lower price....and the market time will be drastically longer.
This chart tells the story for 2011 for all of the communities that feed in to New Trier High School as well as Evanston:
The top (green) line shows the percentage of the original asking price properties sell for when they have not had a price reduction.
The middle (red) line shows the percentage of the most recent asking price properties sold for that had at least one price reduction.
The bottom (blue) line reflects the percentage of the original asking price that properties sell for that have had at least one price reduction.
The differences are staggering!!!
Most houses which do not sell quickly have multiple price reductions before they sell.
This can probably be attributed to the concept that when a property first hits the North Shore market, all of the current active buyers in that price category will flock to see it. After this initial rush of potential buyers, there will still be a flow of new buyers who may come to view it, but this will generally be at a much slower pace than at the beginning. Also, even with a price reduction, it is often difficult to get buyers who previously rejected the property to return to see it.
The bottom line is...Price it right and it will sell.
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