Even though we may no longer be in a buyers’ real estate market, it is still vital to price one’s home competitively. We took a look at a local community that we are very familiar with and compared listing market times among homes with price changes and ones without. The results, while not surprising, were certainly enlightening.
56% of the homes sold had no price changes before selling and averaged a mere 28 days of marketing time. For those homes with only one price change, the average market time more than tripled to 88 days. Finally, any home that made two or more price changes ballooned to an average listing market time of 180 days! An interesting side note, there was no statistical difference between two price changes or more than two price changes.
In my experience, overpricing a home also hurts the final sales price. When a home first comes on the market, it is fresh and buyers are anxious to see the property. There is a buzz generated by your Realtor and the many great real estate tools available today. But if your home is dismissed because it is overpriced, the buyers may not even reconsider it once you have made a price reduction. Now you have become part of the housing inventory, and must wait for new buyers to rediscover your home. Your pool of potential buyers has shrunk, and less demand leads to lower prices.
Pricing a home competitively the first time is a crucial part of a good marketing strategy, and it can only be done once. It is important to seek the advice of a full time real estate expert in your area. Call us at 847-963-0400 for any of your real estate needs.