When it comes to selling a home, setting the right price from the very beginning is akin to laying a solid foundation for a successful transaction. While some might compare a listing's time on the market to fine red wine aging, in reality, the adage doesn't apply. A home listing doesn't improve with time; it can, in fact, become less appealing to potential buyers. Here's why pricing a home correctly at the outset is of paramount importance. Continue below the video for more information and what to do if you get caught in the “overpriced trap”…

**1. ** First Impressions Matter: Just like in any other endeavor, first impressions are crucial in real estate. When a property hits the market, it generates the most interest and attention within the first few weeks. If the listing price is too high, many potential buyers might overlook the property altogether, assuming it's out of their budget.

**2. ** Stale Listings Raise Concerns: If a home remains on the market for an extended period, it can lead buyers to believe that something is wrong with the property. They might wonder why others have passed it up, prompting them to be more cautious and critical during visits.

**3. ** Diminishing Perceived Value: As a listing lingers on the market, potential buyers often perceive its value to be diminishing. This perception can lead to lower offers, even if the price is eventually reduced. Buyers might think they have more negotiating power since the property hasn't sold quickly.

**4. ** Statistical Impact: The longer a property remains unsold, the more it can affect the seller's negotiation position. For every ten additional days a property stays on the market, the likelihood of selling it at a price lower than the initial listing price increases. This can force sellers into a cycle of continuous price reductions, potentially ending up far from the property's actual value.

**5. ** Market Saturation: Real estate markets are dynamic and constantly changing. If a property is priced too high, it might miss the initial wave of active buyers. By the time the price is adjusted, newer and potentially more attractive listings might have saturated the market.

**6. ** There is an opportunity here for Buyers to negotiate great deals by also considering homes that have been on the market for more than 20 days.

In conclusion, pricing a home accurately from the beginning is an essential strategy to secure a timely and satisfactory sale. While fine red wine might improve with age, a home listing doesn't have the same luxury. To avoid the pitfalls of a prolonged listing, which can lead to reduced sale prices and increased days on the market, sellers and their agents must do their due diligence to determine an optimal and competitive price right from day one.

If you find yourself, as a seller, with 10 days on the market and a low volume of showings with no offers, start preparing for a price reduction. If you get to 15 days on the market and nothing has changed; don’t hesitate to drop the price. It’s not what you want to hear, but it’s reality and a professional real estate broker will have the courage to tell you the truth. If they don’t, you now know you’ve hired a weak agent. But by how much should you reduce? That’s a more involved answer that is highly dependent on hyper-local market conditions. I have proprietary data that will help guide you on the answer to that question. Let’s talk about it; give me a call, text, or send me an email.

Follow the link below to get an estimate on what buyers might pay for your home AND a link to search homes in private without your personal information or search patterns being sold to advertisers (which is exactly what those big portals do that you see advertised on TV - how DO you think they make money, hmmmm???)

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