The only thing the over priced listing does is help sell a well priced listing...great terminology and the total truth!
We have all had the Three "L's" of Real Estate etched in our minds, With Real Estate it is all about Location Location, Location!
What about price? There is a "right" Price for EVERY home in EVERY market. The funny thing is that buyers know what that price is and they will not even look at an over priced home. There are always too many over priced homes in just about every market, Even in a Seller's Market you can have an over priced home. The only thing the over priced listing does is help sell a well priced listing.
So what is the right price? Obviously that will be determined by each individual market. From an appraiser's stand point, value is calculated using comparable sales, "comps". A comp is a similar home that has sold and closed with in the most recent few months. A few years ago 6 months old was considered a good comp, today we are seeing 3 months as the preferred comp.
Can you Under price a home? Not really. It may be a buyer's market with more seller's out there than buyers. That does not mean that there are no buyers, it just means that there is too much inventory, and that they buyers are cautious, Take their time, do a lot of research and pounce on the good deals... Often when they pounce we see bidding wars. (yes even in a seller's market there are bidding wars!).
A home priced just below market will often draw the most attention. Remember that it is the buyer that determines the "right price" and when they see value they do not want to miss out and multiple bidders will help drive the price to where it should be. Thus: You can NEVER Under Price a Home.
So: Where do you want to price your home?
- So High that no one will even look? Or
- Just below the market where it will sell quickly and possibly cause a bidding war?
Have a great week.
Since 1987 I have been helping my clients fulfill their dream of home ownership!
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