Pricing for Success

Far too many sellers do not spend enough time carefully pricing their homes before coming on the market, and ultimately walk away with less money and take a lot longer to sell.

The data illustrates a clear trend: the greater the price reduction, the lower the seller’s net proceeds and the longer the home remains on the market.

Farmers' Markets are the new craze, with their pop-up tents and a vibrant array of fresh seasonal produce, meats, fish, baked goods, honey, preserves, and handmade crafts. The colorful displays of seasonal fruit are often picked within hours of the markets' opening, offering incredible flavors and freshness. Yet, sometimes they set the price of fruit too high, which deters too many shoppers from making a purchase. When too much fruit sits until it starts to spoil, the price is lowered, often at a heavy discount, to move it. Ultimately, they earn less than they would have if they had priced it correctly when it was fresh and appealing. 

Similarly, when a homeowner initially comes on the market after pounding the FOR SALE sign in the yard, the home is fresh to the market. Yet, when a home is overpriced, it deters many buyers from making an offer or even touring the house. It sits on the market with waning activity. When the price is finally adjusted, it is not met with the same fanfare as when it initially came on the market. Instead, it is sold at a discount. Like the fruit that starts to spoil, the homeowner ultimately earns less than they would have if they had priced their home correctly when it was fresh to the market. 

Excerpt taken from an article by Steven Thomas.