In preparing my monthly Market Condition Reports for the area towns surrounding Candlewood Lake here in Connecticut, I've noticed a continuing trend between Days on Market and Original List Price vs. Final Sales Price.
With the exception of new construction (which typically takes longer to sell due to the construction time, and often sells at a premium over resale homes), nearly all homes that were on the market for more than 150 days, ended up selling for $50,000 - $100,000 less than the original list price. Some sold for $200,000 less than the original list price and sat on the market for more than two years.
The average Days on Market here in the Candlewood Lake area of Connecticut fluctuates between roughly 90 and 140 days. The average List Price vs. Sales Price ranges from 92% - 98%.
Overpriced homes will fall nowhere near these averages. Some overpriced homes have sat on the market for more than 700 days. That's more than two years. That's a lot of extra time to carry the costs of the home. That's a lot of extra time to keep the home in top showing condition. That's a lot of extra stress and unneeded turmoil. And it prevents you from moving on with your life.
What's the solution? It's simple:
Price the home properly and sell it quickly!
Need help determining the best list price for your home? Ask your agent to prepare a complete Comparative Market Analysis of your property. By utilizing recent sales in your area and making adjustments for the differences in size, location and amenities of the homes, your agent should be able to determine the most likely sales price for the current market.
Still not convinced? Then hire an appraiser. The buyers' lender will hire one after their offer is accepted, anyway. If the home won't appraise for the list price you're asking for, then the deal won't be successful anyway.
Selling your home is stressful enough. Don't add to the stress by overpricing your home. Buyers will not pay more than your home's current market value.
Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
CT Home Group
Keller Williams CT Realty
Connecticut Real Estate and Homes for Sale