Comparable Home D: $533,000 Comparable Home E: $529,000
Tim and Sue appear to have priced their home competitively for the market. Over the next month, the market changes.
Comparable Home A: Expired Tim and Sue’s Home: $545,000
Comparable Home B: $539,000 (Reduced Price) Comparable Home C: $535,000 (Reduced Price) Comparable Home D: Sold Comparable Home E: Pending Comparable Home F: $526,000 (New Listing) Comparable Home G: $525,000 (New Listing) Comparable Home H: $519,000 (New Listing)
Tim and Sue now have the highest priced home in the area in their price range. When a buyer looks at the comparable home prices, it is now the worst value proposition in the marketplace. Most sellers, like Tim and Sue, do not realize the market can shift so far so quickly. It cannot be stressed enough how important it is for you to price your home right the first time. House D sold, and House E had a pending sale from the start.
WHY SHOULD THESE STORIES MATTER TO YOU?
Do you see how important it is to know the true value of your home? Moral of the story: Anyone can lose money in the real estate market. A seller unfamiliar with the ever-changing market risks selling the home for less than it’s worth or losing a sale because of incorrect pricing at listing. In most cases, sellers never even realize it. Pricing errors happen to private sellers all the time. Knowing the home’s true value protects you from settling for less money. Interest rate increases, disasters, changes in the local economy are unforeseen events that can affect value.
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