Is your home priced too high for the current market? Many times, sellers insist on testing the market to make sure they are not leaving money on the table. Some times, the listing agent is selected based on recommending the highest list price. Other times, sellers simply have an inflated opinion of the value of their home. Whatever the reason is, or was, usually ends up backfiring in the end.
This is an illustration of the pricing of an actual home that was first put on the market in October 2006, but due to being out-of-synch with the market, didn’t close until 13 months later .
Sellers need to learn to be more careful than ever about pricing, because in the current market, the carrying costs of mortgage, taxes, insurance, property taxes and homeowner association dues can put a substantial dent in the final net proceeds. This particular listing had a very low tax basis, and a low interest rate on a small mortgage, but taking over a year to sell this property ultimately cost the seller an extra $10,000 in lost proceeds!
My guess (it was not my listing) is that if it had been originally listed at $549,900, it would have had multiple offers almost immediately and closed in 45 to 60 days at a higher price!