Most Homeowners Still Overvaluing Their Homes
According to a recent survey by Home Gain, 73% of homeowners in our region think house is worth more than the listing price recommended by their REALTOR.
In a market like the one we're experiencing currently, this is not unexpected. People have an emotional attachment to their properties. They've maintained and updated them, and often have raised families and gone through some of life's major milestones in the comfort of their homes.
In other words, they generally are not objective when it comes to valuing their houses.
Why not just list at the price you want and let people make an offer?
Because research shows that homes priced above their market value will take longer to sell and ultimately sell for below market value. A 2008 study indicates that homes that do not have price reductions will take an average of 116 days to sell, versus homes with no price reductions (those priced right from the start) which take an average of 40 days to sell.
In addition, price reductions may lag behind market values, and you may end up with less than you would have if your pricing had been lower from the start.
In deciding the price at which to list your home for sale -
Remember that list price is the single most important marketing tool you have, and all the advertising in the world will not overcome the damage done by overpricing.
Make sure your agent has statistics to support a pricing recommendation.
Also, ask for data about short sales and foreclosures in your immediate area.