Musings on Food, Fun & Real Estate in the Mother Lode
Fact – homes that are priced right sell. Yet, time and time again I talk with Sellers who want to list their home well above market value. Their rationale? “Buyers always lowball so we need to start high.” Sounds okay in theory but the problem is that the numbers tell a very different story. Take a look at the Tuolumne County stats for last year:
(At only 2.74% & 5.25% below asking price, respectively, there’s nothing “lowball” in these figures.)
So what about the listings that are priced much higher than market value? They typically sit on the market until a price reduction (or 2 or 3) finally gets them close to market value. Or, they expire. What we’re seeing with Buyers is that they consider it a “waste of time” to make an offer on an overpriced listing. They’d rather wait for the sellers to “get real” on price before making a move. In fact, often times they won’t even look at an overpriced listing let alone make an offer.
Back to the stats:
And when the Sellers never “get real” on price? They don’t sell.
Moral of the story- if you price your home right it will sell. If you price it right from the beginning of the listing it will sell faster. In a declining market, selling faster equals more money. A home will sell for more money on day 1 of a listing than on day 208. There is power in pricing a home right.
*for the purposes of calculating the Average Days on Market I did not include the short-sale listings as the Days on Market can be exceedingly long and skew the numbers. Souce of sales data: TCAR MLS.