If you have a home for sale, it may surprise you to learn that your initial listing price can affect more than just the potential dollar price offers that come in on your property. In fact, according to a June 2010 Tarr Report, the price at which you first price your home can also impact how many days your home remains on the market.
The Report states that the homes for sale where the final list price was less than the original list price actually sold in an average of 151 days at 90% of their original listing price. Yet, homes for sale where the final list price was equal to the original list price sold in an average of only 41 days – and at 98% of their initial list price.
So, it would appear that the higher you set the initial listing price of your home, the longer it may be that your property is likely to remain sitting on the market. Therefore, even if you are hoping to obtain more money for your home – as most sellers would certainly be – you may also have to balance that out with carrying the property, and continuing to make the payments on it, for a much longer period of time as compared to a seller who initially lists their home at a slightly lower listing price.
In addition, depending on the amount of your home’s mortgage, it is possible that you could end up spending more on your home, yet still have no guarantee that it will sell at the higher price. This is because, in many instances, the longer a home remains on the market, the less likely it is to sell for its original list price.
For more information on how to set your ideal list price, give me a call. I can help you to price your home right the first time so that it has a better chance of selling quickly – allowing you to move on to more easily to your new home, and new adventures in life.