Pricing a Home to Sell

In a hot real estate market, an overpriced home may sell easily. However in a softer market, an overpriced home may sit on the market for months. How long is too long? Well, it depends on the specific market. In general, if a home is on the market more than 2 months with no serious buyer interest, it’s usually a sign of an overpriced home. The first buzz of activity usually occurs in the first month a home is on the market. During that time, there’s lots of activity: scheduled showings, and open houses. If agent activity is slow, it may indicate that agents think the home is overpriced and not worth showing to their clients. If your home is on the market longer than 3 months, and you have no buyer interest, there is either something wrong with the home, or it’s overpriced. What are the tell-tale signs that your home is overpriced? The first thing to examine is other properties in the neighborhood. If your home is priced well above these properties without some specific reason, it may signal a problem. Second, how long has your home been on the market? If it’s longer than 1 month with no buyer interest, it’s time to think about a serious price reduction. Finally, if you priced your home by taking your purchase price and added the cost of any remodeling, you may be disappointed. The value of your home is not determined by how much you have invested into it, but what the market is willing to pay. Be careful not to get “upside down” on your home by spending beyond its market limit with remodeling improvements. If you’re thinking of buying or selling soon, and require competent and caring representation, please call me at 206-226-0565.