The most crucial period for your home is during the first 10 days on the market. Once your home is listed on the MLS, you'll gauge the interest it generates. If your price is too high, buyers will overlook your property because it falls outside their budget or does not align with the values in your market area. By the time you choose to lower the price, they will have moved on to other properties. As your home stays on the market, potential buyers may wonder why it hasn't sold, concluding that it is somehow undesirable—or worse, that it has unfixable issues. Price the house appropriately from the beginning to attract interest and capture the attention of buyers for a quicker sale. Setting unrealistic prices ultimately leads to financial loss. I have witnessed this happen repeatedly.
Un-rushed High Pricing
Even if you’re not in a hurry to sell, testing the market by listing your home at a high price to “see how it goes" isn’t a wise move. Serious home shoppers may spend months looking for a new home. They are constantly seeking new listings, not ones that have been sitting on the market. Believing that the market will turn in your favor may not be a reliable strategy, either. If prices in your area are declining, you could end up losing money. By pricing your home according to current market values, you can sell it more quickly and for a better price.
Price Dropping
Another pricing trap to avoid is setting your home’s price significantly higher than comparable properties in the area, intending to lower it if it doesn’t sell within three months. This strategy may work in a stable or rising market. However, if the market in your area is declining, you might have to reduce the price even more drastically to align with the falling market.
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