Pricing Your Home 

                  Owners I have met with over the years have different reasons to over price their home in terms of market value.  The over priced property quickly becomes a source of frustration to Owners as Prospective Buyers come through, but Offers never come.  Eventually, the Price is dropped and the home sells, but not until a great deal of time and effort on the part of the seller is wasted.

Here are some of the reasons owners over price homes, and what I have found to be true in the market.

1. Owners have invested money on improvements, and want their price to recover the cost of the work.   

The reality is: there is no relationship between cost and market value.  Cost is the amount paid for the home plus any capital improvements.  Market value is the amount that would appeal to Buyers and cause a Sale within a reasonable time.  Often, it is prudent for owners in this situation to ask themselves this question:  If I had known I was going to  move, would I have made these improvements?  The answer for many people is no.  Improvements are often for enjoyment, not resale.

2.   We want to build in bargaining room, or let’s just try it here for a while, then we can reduce it later.    

      The reality is that Buyers are more frequently lost in the showing stage rather than in the Negotiating Stage.  Once a home is priced to market value, offers will come in, and negotiations can begin.  A home priced to market has a much better chance of getting into a multiple offer situation, which is a bonus for you, the seller.

      Typically, there are buyers waiting for new properties to come on the market.  If a seller prices too high in the beginning, all the initial excitement is wasted, and thirty days later, that home joins the others that have been for sale for a period of time.  In reality, your best opportunity for an offer is to price your home at market value the first day you list it for sale.