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Julie Reddington's Blog

By Julie Reddington | Agent in Highlands Ranch, CO

Does over pricing your home hurt you?

Here is a piece of conventional wisdom in the real estate industry: Overpriced homes sit on the market a long time, get stale and eventually sell for less than market value. Agents are told they have a solemn moral and ethical obligation to scare the daylights out of sellers about the dangers of overpricing their homes.

Homes on the market 30 days get within 2% of asking price while those on the market over 90 days end up with a sales price 10% below asking price. Chart 1 from the National Association of Realtors makes this clear and obvious.

Is this true?

One of the agents in my office did the original research shown in Chart 2. Yes ... homes that sold quickly were close to asking price and those that took longer to sell show a bigger differential from asking price to sales price. However, notice the actual sale prices. Regardless of how long it took homes to sell, they all sold in the range of $341,000 to $344,000. 

(c) Colorado Home Realty

Comments

By Christopher Crosby,  Wed Aug 7 2013, 11:49
Just presented this to a seller to address this exact issue. Thanks!

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