If "The Price is Right", it Won't "Come on Down!"

By
Real Estate Agent with Mackintosh, Inc., REALTORS® 652457

We all want to make the most money for our clients when we sell their homes, but overpricing can actually hurt sellers more than help them!

 

You can find a number of Intelligent Pricing Graphs online, which will show that more buyers will look at homes priced at market value than above market value!  And of course, considerably more buyers will look at homes priced below market value, but what seller wants that?

 

The first 2-3 weeks a new listing is on the market are the most crucial for attracting potential buyers, so it is extremely important to price it right the first time!

 

If very few buyers look at a property during that time frame, it is likely to be overpriced.  Unfortunately, even if it is reduced to the market value weeks later, the crucial "fresh on the market" time frame needed to attract the most buyers has already passed.  This can cause properties to linger on the market with diminishing buyer interest over time.  Usually, the final Sales Price for overpriced homes is less than the Original Sales Price.

 

Current market conditions are excellent indicators to help determine market value and price.

What are similar homes selling for in the area? How long were they on the market before they sold? What is the current financial market look like in terms of affordability for buyers - interest rates, down payment requirements, first-time home buyer assistance programs? There is a lot to consider when determining the best price for a new listing.  Real estate agents are trained and educated in these areas, and can be an excellent guide through a multifaceted process.

 

Finally, there is a human element to selling a home, which should be considered.

"Sticking it to the Buyer" is not a good strategy for sellers, nor is "Giving Away the Moon and Stars" a good option. People, for the most part, can see that a deal that mutually benefits both sides of the table provides a more compatible world for all of us, and those deals will likely get the most attention of all.

 

Below is a real-time, interactive chart of Frederick, MD comparing the final Sales Price to the Original Listing Price in relation to the length of time the properties were on the market.  If you hover over the bar graph you will see detailed statistics.

 

 

Comments (12)

Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Pricing it right in today's supply shortage market should result in Multi offers and Sale Prices above List Price !!!

Feb 08, 2017 10:28 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

You only get one chance to make a first impression & if that impression of a home is overpriced it's tough to get those potential buyers to look again even when you lower the price. So it's important to price it right the first time.

Feb 08, 2017 10:35 AM
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

We are experiencing a severe shortage of inventory and home are selling in multiple offer well above asking price.  Sellers are tending to list their home at slightly under market value, to attract buyers, and delay offers for 6-8 days.

Feb 08, 2017 10:48 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ellen, you did a great job on your first blog post!   In the first two weeks, buyers should not expect to "get a deal", but the longer the home sits on the market, that fact changes.

Feb 08, 2017 02:59 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I would like to welcome you to our ActiveRain Community Ellen Giuffre. I enjoy reading people's insights and ideas; that's how I learn and keeps me coming me back daily. I encourage you to keep blogging.

Feb 08, 2017 03:47 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

You are right Ellen, pricing right the first time is the smart way to go, far too many dont come back when the price is adjusted.

Feb 08, 2017 11:09 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
All the best of success to you.
Bob

Feb 08, 2017 11:09 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Welcome to ActiveRain! I liked your choice of title - it definitely ensured I read the material. I look forward to hearing more from you.

Feb 09, 2017 06:03 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Ellen and Welcome to the Rain where we all learn from each other and help each other.  Make it a great day!

 

Feb 09, 2017 09:48 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Ellen welcome to ActiveRain and congratulations on posting your first blog on this site.

Feb 09, 2017 06:31 PM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Hi Ellen Giuffre, Welcome to Active Rain and congrats on your first blog post.  This is a great place to meet and interact with awesome professionals.

Feb 10, 2017 06:24 AM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Welcome.

 

Great use of interactive content in your post.  I'm sure your prospects will find it helpful. 

 

Good luck playing in the 'Rain.  This is a great community to be a part of.

 

Feb 11, 2017 02:52 PM