The True Costs of Overpricing your Home for Sale
Rehoboth beach home sale prices are up an average of 20% over this same period from 2012. That fact, and other recent real estate headlines, can make it easy for sellers to make the mistake of overpricing their home. Some come into the market with a strategy of a higher than market price which they can just adjust over time. Recent studies show this strategy can backfire and actually cost you money in the long run.
This question was scientifically investigated by John R. Knight, Professor of Finance and Real Estate at the Eberhardt School of Business, University of the Pacific in California. He found that, on average, properties which experience a listing price change took longer to sell and experience a price discount more than similar properties. As for which properties are most likely to experience a price change, Prof. Knight found that the higher the initial asking price; the greater the likelihood that any given property will experience a listing price change. Sellers should be aware of the critical need to getting the price correct from the start. Listing a property over market value will ultimately take longer to sell and could very well sell for less. Please see the chart below for and example of the true cost of overpricing.
One of the other true costs of overpricing your home to us is time. We and you put your home on the market to sell. Homes priced correctly in our market are doing just that. Homes that were overpriced from the beginning may still be for sale waiting for the next price adjustment. There is a price to moving on, or especially moving up. Take a minute to consider the cost of waiting in your pricing strategy.
We believe to take a overpriced listing and get the correct price sometime later is not doing our sellers any favors. The initial and detailed analysis of the proper price is much more critical than some agents give it attention. If you are interested in finding out what your current market value is, Click Here.