Short answer
Price is the first signal buyers get. A home priced correctly attracts the most attention in its first two weeks; a home priced high usually sells later for less than it would have if it had started at the correct price.
Why the first two weeks matter
Buyers who are already searching see your home immediately. That group is the most motivated audience your listing will ever have.
If they pass, the next audience is smaller and arrives more slowly. New buyers just entering the market, buyers whose budget has changed, and most importantly buyers looking for a bargain willing to make a lower offer on a home that's been sitting.
What a price is based on
Recent comparable sales is our number one indicator, current listings tell us how many options we are competing against, condition and updates, location, lot, and property type. On rural and lake property, land and frontage can even outweigh the house itself.
Price reductions
A reduction works best when it is meaningful and timely. Small, slow reductions tend to follow the market down instead of catching it. It's much better to price right the first time, but a large timely reduction within the first two weeks is the next best option.
What this means for you
Set the price to attract the buyers who are looking right now, not to leave room for negotiation. Room to negotiate mostly buys you time on the market, fewer offers to pick from, and ultimately a lower sales price.
Request My Home-Value ReviewRelated guides
General education from AM Realty MN, brokered by LPT Realty, LLC. Not legal, tax, or lending advice.