Pricing your property at fair market value from the start will generate the most activity from real estate agents and home buyers. The price must attract enough attention to result in showings and offers.
The largest number of potential buyers will view a newly listed home within the first 14 days on the market, and the number will decrease as the days on the market increase. This pool of buyers includes home buyers just entering the market and, more importantly, buyers who have already seen the existing inventory and have not found a home. That makes them eager and able to make an offer.
As shown in the diagram to the right, even a little bit above market value decreases the number of potential buyers for a property. At current market value, there is a 95% chance that the property will sell at list price. As the price increases above market value, the chances of a sale decrease accordingly.
- Aggressive pricing will attract more attention from buyers and increase the odds of selling your home faster
- In a Seller's Market, an aggressive pricing strategy can result in multiple offers, thereby increasing the chances that your home will sell for more than list price
- Setting an initial high price that results in few showings and no offers will require price repositioning later, once the house is shopworn, and often results in a sales price that is lower than market value!
