OnDemand WTP Pricing Research

Overpricing: How Aiming Too High Can Cost You | Zillow Porchlight

You may think of it as giving yourself room to bargain, but beware. You could just turn off buyers.

Pricing a home for sale is more of an art than a science. Each home’s value falls within a range, and the price the buyer and seller agree on determines the exact value of the property.

If priced competitively from the very beginning, a home will sell at the higher end of the value range. The longer it lingers, the lower it lands in that range.

In fact, “homes that linger on the market tend to sell for significantly less than their listing price: five percent less after two months,” according to Zillow research.

Price: The battle between seller and agent
Homeowners have a very limited perspective on the real estate market, as they are only concerned with one home: their own.

On the other hand, successful agents live and breathe their local markets daily. They have their feet on the street, and possess a great understanding of current market conditions because they work with buyers, tour homes, and have first-hand knowledge of what moves.

Because they have limited knowledge, many sellers over-value their homes. They may assume that the agent just wants to price their home — their biggest asset — at a low price for a quick sale. And so a friction begins.

But agents know that homes that are priced right and show well will sell in good times and bad.

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Overpricing: How Aiming Too High Can Cost You – Zillow Porchlight.

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