Advice for Sellers – Price it Right From the Start

When you go to sell your home, I have one really important piece of advice for you.  And it is the one thing you don’t want to hear.  It is CRITICAL to set the price for your home at fair market value from day one.

All too often, sellers want to start high and then drop the price after X amount of days.  As logical as that plan sounds, it is actually one of the worst things you can do.  In the current market, if a home is priced at a fair market value, it sells in a matter of days and often for over the list price.  If a home is priced too high, it sits on the market.  And the longer it sits on the market, the more susceptible it is to low-ball offers.  Here is an example:

Shawn has a one bedroom condo at the Cristalla, and so does his neighbor Heather.  Shawn wants to get the condo sold quickly and for a fair price.  Heather is no hurry to sell her condo and wants the most money possible.  These two neighbors have identical condos in the same building.  Shawn puts his condo on the market for $500,000 and Heather puts her on the market at $525,000.

Shawn gets two offers on this condo in the first week, and ends up selling the condo for $507,000 and closes 40 days after he first listed his home.  Heather is getting lots of potential buyers looking at her condo, but no offers.  After 21 days on the market, she drops the price to $515,000.  Still no offers.  So after 45 days (At this point, Shawns condo has sold and the new owner has moved in), she drops the price again to $505,000.  Finally, after almost three months on the market, Heather gets an offer for $497,000 that she reluctantly takes.

In conclusion, it is in your, the sellers, best interest to price your home fairly from the start.  You will sell your property faster, with less headache, and for a better price.