Despite the fact that declining home prices have been grabbing headlines for several months now, it can be a challenge for any of us to let go of what we had hoped our home would sell for.
It’s often the case that, prior to listing their homes , sellers interview a few agents, with a plan to sign on with the one who agrees to list it at the highest price. With the understanding that the listing price is ultimately the decision of the seller, not the real estate agent, I’d like to explain one of the most critical dynamics that impacts the actual sales price of a home.
Whether we are in a buyer’s market or a seller’s market, the same principle applies. The most effective pricing strategy for getting top dollar for a home is to price it competitively. This might not seem to make sense at first, but study after study, as well as my own personal experience, has proven that when a competitively priced home hits the market, it generates an instant buzz. Agents begin calling their prospective buyers and lining up showings to ensure that they don’t miss out on a great buy. Bidding wars can even break out.
Let’s contrast this situation to what happens when a home is priced higher than comparable properties. Neighbors and prospective buyers take one look at the listing sheet and dismiss it as overpriced. The home sits on the market and sits some more. Eventually “REDUCED PRICE!” signs go up. The market starts to wonder what’s wrong with the house since it hasn’t sold.
Eventually, sellers take it off the market or agree to sell it for a much lower price than they had originally hoped.
In any market, competitively priced homes sell quicker and command a higher selling price than homes that factor high hopes into the pricing equation.
As a real estate professional specializing in the Northwest Indiana market, I diligently track trends as they pertain to the pricing and demand of homes. Want to learn more about how to sell your home quickly and at the best possible price? I’d love to talk with you. Contact me any time at (219) 661-1256 or jana@thejanacaudillteam.com .
