Here is a piece of conventional wisdom in the real estate industry:Â
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.Â Chart 1
Â 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 inÂ 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.Â
(c) Colorado Home Realty