Price your home accurately the first time, or suffer
Apr 2011 14

It’s important to accurately price your home when you list it for sale.

If you don’t, and then have to reprice it, downward, a month or two later, prospective buyers will begin to think there’s something wrong with the property. Even if you reprice it at an appropriate price, they will still think there is something wrong. They may come to take a look and even make an offer, but more often than not, the offers will come in lower than they would have if you had priced appropriately from the very beginning.

It can become a case of “trying to catch a falling knife” as you reprice and reprice, over and over again.

This is even more important in the current real estate market. Even though there isn’t a glut of inventory, there are enough properties out there that buyers will veer toward the listings that seem accurately priced and visit them, first.

That’s why there’s a big difference in the number of days properties remain on the market. if you look at the average days on market for downtown Boston condos right now, it’s somewhere around 124 days. But, for units under agreement, it’s only 92 days, a full month less.

Properties priced right go under agreement faster.

I mention this because there was a report out by Trulia today about “stingy sellers”, meaning those who lower their prices very slowly over time. Boston was considered “most-stingy” meaning sellers lowered their prices by the smallest amounts when compared to sellers in other cities.

A Trulia employee explains it all for you and I couldn’t agree more.

“Sellers who don’t cut their homes’ list prices deeply enough the first time face a long lag-time on the market and a high chance of needing to make a second cut, which can result in low-ball offers from buyers,” said Tara-Nicholle Nelson, consumer educator for Trulia. “We also see a pattern of sellers making early, deep and multiple discounts in foreclosure hot spots such as Michigan, Florida, Maryland and California – a bad omen for the future of home values in these already depressed areas.”

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