Why Overpriced Listings Can Cost You Big!Friday, November 7th, 2008
The worst home selling mistake a seller can make is overpricing. Prices of homes are on the decline and you can estimate a 1% decline per month in home sale prices on average in Monmouth County. In order to get the most for your house in this market, a correct price tag is the key factor. If a house is listed today and does not sell within 30 days, the price will have to be adjusted downward at least 1%. Have you heard the phrase “chasing the market”? This is when a seller prices a property too high and then reduces the price as time goes on. Each time the price is reduced the seller cannot understand why the house still doesn’t sell after such a big reduction in price. Can you figure out why this happens? What happens is that every time the seller reduces the price, the market has declined and the reduced price is still not in line with the market. So, if you start out with the correct price you will end up with more in your pocket than if you try to test the market by putting a higher price tag on your property just to see if you will get any takers. Pricing it right is critical in order to get the most money for your house. What is the right price? One important factor to remember when pricing your house for today’s market is that you must factor in comparable sales but adjust the price from the contract date of the sold comparison, and not from the date the property actually closed. For further information on “Right Pricing Analysis” please contact me since I specialize in giving home owners the right price for today’s real estate market even if it is not what they want to hear. My facts back up my “right price analysis” and help homeowners make wise decisions.