When selling a home, sellers want to get the most money possible. I understand that... I've sold my homes over the years and I want top dollar, too. However, there's a way to ensure sellers get top dollar and a way to ensure they don't.
Even when it's fairly obvious how much a home should be listed for, sellers often want to "try" a higher price, even if just for a short time, just "in case" they are able to get more money. I understand... seems like a reasonable idea, doesn't it? Well... not necessarily. Let me explain.
Homes for sale get the most interest and activity when they are NEW on the market (see chart below). That makes sense, doesn't it? And then, of course, it stands to reason that as time goes on, buyer interest decreases. The listing is no longer fresh and new, other competing homes come on the market, and buyers start to question why the home hasn't sold yet. Then, even if they are interested, they figure the seller must be getting desperate and buyers tend to make lower offers. Ultimately, the longer a home sits on the market, the less it will sell for.
Sellers must ensure the property is priced "right" from the very start or they risk losing the vast majority of buyers who will be "interested" when it's first put on the market. A home priced "right" will sell. An over-priced home will sit on the market longer, "help sell" other homes that are more reasonably priced, and will ultimately have to be priced below what it would have sold for had it been priced right from the start.
The bottom line: In order to get TOP DOLLAR, price it right from the start. And I don't mean priced "low", I mean priced RIGHT (according to the current real estate market).
Of course, be sure and discuss with your Realtor the best pricing strategy for your property.
Call me at 916-241-8000 or 530-677-1332 with any questions or if you have property to sell.