Every Seller has primarily two main objectives.......to sell their home at the highest price possible and in the shortest amount of time. Obviously there are many factors that play in to a Seller's ability to accomplish these two tasks. They are the Condition of the property, the Location, how well the property is Marketed/Exposed to potential consumers, Economic factors and Price. Some of these factors are within the seller's control and some or not, however they are all inter-related and impact a seller's ability to sell in the fastest amount of time at the highest price.
Pricing a home correctly is one of the biggest challenges in this current housing market. A few signs that a home is potentially over-priced are a low number of showings, feedback from purchasers that have looked at the home that it is over-priced compared to other things on the market, or a lack of any offers on the property. Often times sellers are required to reduce their original list price to attract "would-be purchasers". Today's graph illustrates the number of Active properties on the market, broken down in to price ranges and the percentage of those active listings that have experienced a price reduction during their current listing period.
As you can see, 42.5% of all Active listings have experienced a price reduction in an attempt to get more in alignment with the current housing market dynamics with the largest percentage occurring in the $375,000-$500,000 price range (51.4%).*
Getting the list price right the first time around is critical when it comes to selling a home at the highest price possible. When a price reduction is necessary it amounts to not only a longer amount of time on the market but also a considerably reduced final sales price in the long run. Check back tomorrow as we will review the consequences sellers face when they overprice the listing from the beginning!
*Source FMLS Active listings as of 9/21/09
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