Cape Gazette
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Asking Too Much for Your Home Can Cost Time and Money

By Pat Campbell-White's Rehoboth Beachteam | Aug 22, 2014

Rehoboth beach home sale prices continue to trend upward in 2014 compared to 2013 prices. That fact, and other 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.

A recent college study found that properties listed with asking prices higher than current market value experience more price changes. These properties took longer to sell and in most cases sell for less than similar homes initially priced closer to actual market value.

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 that shows the discount in asking price relative to time on the market.

One of the other true costs of overpricing your home to us, is time. We and you put your home on the market for one purpose; 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 in some cases 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. We combine over 60 years of trusted, local real estate experience.

Price reductions over time

Comments (2)
Posted by: Wyneth Achenbaum | Apr 10, 2014 22:22

Would someone care to explain the logic of this statement, please?

 

"A recent college study found that, on average, properties which experience a listing price change took longer to sell and experience a price discount more than similar properties."



Posted by: Pat Campbell-White | Apr 15, 2014 07:52

Wyneth

We possibly could have explained this a bit better.

A home that is listed on the high end of the market will likely need more price adjustments to be in line with the actual market prices. This keeps the home listed for a longer period of time and eventually results in a lower sales price compared to similar homes.

 



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