Selling your single family home can be a very stressful time for most homeowners. From keeping everything clean for showings to worries about the bottom line, it is no wonder homeowners can be anxious over the process. Pricing a home for sale is part science and part art. Comps can be analyzed only so much, and then a talented real estate agent gets into the 'art' of pricing.
The MLS Search
Potential buyers search in 25k dollar amounts. No one tells their realtor to search for single-family homes priced at exactly $213,000. Instead, they tell their agent to look from 200-225k, which should pull up enough homes in the MLS (multi-listing service) to choose from that they can afford. If your home is valued through the recent comps at around that $213,000 price and you try to push it to 230k under the guise of having room to negotiate, your buyer will never see your home. It won't come up in their MLS search because you are just over their price range. It will, however, come up in the MLS search of buyers looking from 225-250k, but those buyers do not want a $213,000 house. You want to position your home on the MLS to sell.
The 'Newness' Window
Houses go stale. When a house is priced too high and positioned wrong on the MLS, it will sit on the market for weeks and months on end. While different parts of the country vary greatly on their average days on market, the newness window exists everywhere. Buyers get their saved MLS search emailed to them daily as new listings come on the market. There is always an excitement with new listings to be the first to see it. When your home grows stale due to being overpriced, you can adjust the price, but you can't get that newness back. All the buyers have seen your house before. The excitement is gone.
Buyers are smart. They are also suspicious. When you do finally adjust the price, buyers begin to wonder what is wrong. They think you are the difficult seller who forced his or her real estate agent to list the house at an inflated price. No one wants to deal with a difficult seller. Closing horror stories begin to reverberate in their minds. The other conclusion that is often drawn is that there is something wrong with your house. Why would you drop the price 20k if everything was fine?
Pricing your single-family home right the first time is important.