Given the current economic condition, pricing your home correctly is more important now than ever. In a predominately buyer’s market, a well-priced home will be perceived as a good value and has a much higher chance of selling in a significantly shorter timeframe. The National Association of Realtors statistics state a home priced at fair-market value will typically sell within 4-6 weeks, within a few percent of the list price. However, overpricing by just 5-10% can drastically impact the time on market and percentage of dollars gained in comparison to the list price. Here is a great reference for time on market vs. percentage of list price achieved:
These statistics show that after sitting on the market for 6 months, the seller will agree to come down in price an average of 7% in negotiations to get the sale, essentially putting them in the same price point they should have been in from the beginning. Not only has the seller been inconvenienced for 6 months with showings, they have endured as many months of mortgage payments and property maintenance. The major caveat to consider is that this is based on a flat market. If the values continue to slip, your final sale price will be impacted by that percentage as well. In the end, it’s best to be as realistic about price as possible and garner the most attention from buyers as quickly as possible.
