Some home sellers price a home according to what they want or need. A home seller may have a number in mind that they want to cover moving costs, commission, or to make a profit. The fact is, if the list price for a home isn’t based on the current market value of the home, it will sit on the market for a long time. Buyers will look at how long the home has been on the market and wonder what is wrong with the home and why it hasn’t sold yet, resulting in no showings. Buyers are not interested in overpriced properties.
We want to emphasize that only the market can set the price for your home—an Agent doesn’t arbitrarily decide what the right price will be. Instead, your Agent should be able to give you a list of comparative homes for sale in the area, and more importantly, homes that have recently sold. Agents will also do a complete walk-through of the home, as well as have them do a thorough inspection of the exterior. Once the Agent presents you with the data you both should collectively decide what will be the best listing price. Do not be fooled into hiring an agent who promises the highest sale price. Remember, it’s easy to make a verbal promise but much harder to deliver on it.
When a home is priced correctly at the very beginning, it will sell faster and for a higher average price than homes that stay on the market for a long time. In fact, the average sale price for homes on the market from 0 to 30 days can be higher than the average list price. Homes on the market longer than 30 days generally causes the average sale price to be lower than the price the home was originally listed at.