The Truth about Home Pricing
"Ironically, instead of getting more money... [Over-pricing] usually stigmatizes a property and reduces the eventual sale price to less than it would have been with more realistic pricing.” - House Selling for Dummies
Fair market value is that price a qualified, reasonably knowledgeable buyer is willing to pay, which a seller, not under duress, is willing to accept after the home has been properly exposed to the market.
Neither agents nor sellers determine market value: Only the market – willing and able buyers -- determines market value. Agent and seller work together to create a plan – which includes pricing, preparation, and marketing -- to maximize the conditions that reliably achieve the highest possible sales price.
The vast majority of buyers will not make offers on homes they consider significantly overpriced. Either they don’t want to waste their time, or are uncomfortable with possibly “offending” the seller. In any case, they simply move on to other listings.
Well-priced homes create a sense of urgency in the buyer/broker communities to act quickly with strong, clean offers.
