The advantage to pricing a home lower than the comps is to sell it quickly (lower days on the market) in a highly competitive market. There are only so many buyers and lots and lots of homes for sale. In our area everyone wants the best deal and often that is 30% under the list price.
On the other hand, all this lower pricing continues to put downward pressure on the real estate market and perpetuates lower and lower home prices. I wonder if a year from now all the people who answered this question will be singing the same tune.
At some point, sellers will say enough is enough. When that time comes we will finally level out and see home prices rise instead of continue the downward spiral.... more
Closing cost appeal really depends on the individual buyer--keep in mind that a home is worth what someone is willing to pay for it; it doesnâ€™t matter what the seller needs or potential buyers can afford to spend. Market conditions do matter as does the immediacy for a transaction to take place. In setting a price, it is in the sellerâ€™s best interest to focus on the current market conditions in conjunction with general economic value projections over the next six months--therefore make sure you are competitively priced-- review comps with your agent--recently closed similar properties in the immediate area; also make sure the marketing maximizes your exposure.... more