In the past two weeks I listed 2 properties, both were priced below market value. In one instance I received an offer that was $11,000.00 higher than the list price within the first week. On the other listing I received an “AS IS” offer the day it went into the MLS for just under list price, which the sellers felt was reasonable considering the repairs that had to be made to the property.
Using statistics and projections from reliable resources I was able to persuade the sellers not to price their properties above market value. Most sellers want to leave room to negotiate and they miss the point that if their home is priced below market value they will actually get a higher price than if it is priced above market value.
Many real estate experts who study facts and trends are encouraging sellers to follow this rule in order to stop the bleeding. There is another wave of foreclosures due to hit the market; it is known as the Shadow Inventory. An article written by Steve Harney, entitled Dry Your Eyes and Lower Your Price gives a few more examples of how proper pricing is helping others throughout the country.
My advice is, if your Realtor tells you it is time to reduce the price of your home….do it.