Overpricing Dilemma
As the inventory continues to rise, more sellers are reducing their asking prices or pulling their homes off the market altogether, indicative that far too many homes are overpriced. The number of homes pulled off the market this year compared to last year is up 21%, and 34% of the active listing inventory has reduced the asking price at least once.
Garage sales are a great way to get rid of the constant accumulation of “stuff” that is no longer used. A successful sale opens up more room and space in the garage, especially when it is a large item like a bike or furniture. Unfortunately, for many, the initial asking price is stretched to a point where nobody is interested. As the morning wears on, it is time to make a decision: lug that large piece of furniture back into the garage, unwilling to part because of price, or lower the price to a point where someone will finally buy it. There is not as much interest because the potential buyer traffic fades as the day grows longer. The price gets slashed further until someone finally agrees to the lowered price.
Similarly, many sellers jump into the housing arena and stretch the asking price for a variety of reasons, only to sit on the market with no offers and no success. They, too, must decide whether to reduce the asking price to the Fair Market Value or pull their home off the market altogether.
Excerpt taken from an article by Steven Thomas.
