Financial Consequences Include:
There are so many stats on the problem of overpricing but I’m going to start with one from the National Association of REALTORS.
Of houses that are on the market more than 17 weeks, 45% of the sellers took less than 90% of the asking price. This stat essentially confirms that the longer a house is on the market, the worse the offers become.
If you think about it, this makes sense. We’ve all seen it….a house sits on the market for a while and everyone (including agents) begin to ponder the question, “What’s wrong with it?”
Often a seller will make price adjustments hoping that this move will motivate but many times this move only makes people sit and watch.
But now let’s talk about local statistics…in my area (I’m in Raleigh, NC where the market is very hot) we are fortunate to receive great statistics. A statistic that has been consistent for years is that an overpriced house takes three times longer to sell and has a much lower sales price to list price ratio.
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