Listing your home at an appropriate price optimizes the amount of qualified buyers to be exposed to your property, resulting in a quicker sale and receiving top dollar for your home.
Perils of Overpricing
When a property comes on the market at a price higher than what it's worth, it loses the attention of potential buyers during the listing's most critical time - the first few weeks on the market.
The price can be lowered as the property sits on the market, but by this time many qualified buyers would have moved on, potentially leading you to having no choice but to settle for a price that may be less than what it's worth.
Historical Pricing vs. HYSTERICAL Pricing
When doing a market analysis for a new listing, REALTORS® look backwards, historically, to recent sales of similar type properties, in similar areas, within the time frame of similar activity.
However, when sufficient homes as previously described sell, the historical pricing, in the current market, goes up. By doing this, REALTORS® avoid the HYSTERICAL pricing model and use market values to set the listing price.
Keep in mind, supply and demand can move the selling prices up, just as an oversupply can move selling prices down!
Real Estate is not only a transactional business it is very much a cyclical business - there will always be highs and lows in the market. While numbers and statistics are great, the reality is, knowing and understanding HOW the market works and WHAT you need to do to make it work for you are also important. Don't let the numbers and the headlines scare you from pursuing your Real Estate goals.
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