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:
|Address||Days on Market||Ration Final Sale/List Price|
|1086 Abilene Way||19||92%|
|1841 Browning Court||107||97%|
|1882 Browning Court||33||95%|
|1041 Cutter Lane||8||98%|
|951 Cutter Lane||1||94%|
|931 Cutter Lane||207||93%|
|1194 Angus Court||7||100%|
|1056 Abilene Way||446||98%|
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.