Fab Real Estate Blog: December 2007

Dangers of Overpricing

I completed my monthly statistics for homes sold in Danbury, Connecticut during the month of November, 2007.

On average, homes sold in 170 days, and closed for 95.4% of their most recent list price.  This is fairly typical for our area.

Several homes, however, sat on the market between 300 and 500 days before selling.  This is far too long for a home to sit without selling in our market.  So, I looked a bit further at these homes:

On average, these homes sold for only 77% of their list price.

That is too low.  Why did they sell for so much less than their list price?  Why did they sit on the market for so long before selling?

Because they were overpriced.

Pricing your home for sale for anything above its current market value will not sell your home.  No matter how much money you want to sell your home for, it will only sell for its current market value.  If you overprice your home, you will then be faced with a very long marketing time, as is indicated above, and most likely a much lower price than you would have received originally.  Buyers see price reductions and long marketing times as desperation by the sellers.  They will try to take advantage of that.

Want to sell your home?  Price it right.

I've written about this before.  Take a look:

The Importance of Price

Days on Market: It's a Matter of Price

 

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
CT Home Group
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

Comment balloon 6 commentsDon Fabrizio-Garcia • December 30 2007 10:04AM
Dangers of Overpricing
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