Sales Prices – Get it right the first time

Are there undesirable effects from changing the listing price of a home?

Findings seem to indicate that, on average, properties that undergo a listing price change take longer to sell and experience pricing discounts greater than comparable homes. Likewise, homes with price changes are found to go through even longer marketing times and greater pricing discounts. The greater the initial list price over market value, the higher the likelihood that any given property will experience lowered overall returns.

Consequences for Getting Price Right

Sellers, and agents, should be concerned of the necessity of getting the price correct from the start. Sellers wanting to list over will ultimately take longer for houses to sell and will sell property for less, on average, than a comparable home listed at actual market value. Brokers and Agents who take on over-priced listings and adjust the price right later will ultimately work harder trying to sell, as well as obviously not do sellers any favors. Consequently, proper pricing is much more critical from the start.

Interestingly, listing price increases and decreases both can lead to similar results such as longer marketing times, and lower price returns in the end. For that reason, get the price right from the beginning since it is best for all involved, especially the seller.



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