What’s the biggest difference between a house that is priced right, and a house that starts high, and has price reductions?
Houses that don’t have price reductions sell much more quickly.
Perhaps that comes as no surprise. After all, don’t most people reduce their price because a home hasn’t sold? Won’t setting the price high to begin with possibly result in a higher sales price? Is there any proof that homes without price adjustments sell more quickly?
Yes – in a recent study of 2019 home sales in Forsyth County, Georgia, an analysis was done of how long it took to sell single-detached homes that did not have a price adjustment compared to those that did. The results are surprising:
| Pricing Adjustment (Y/N) | Number of Sales | Total Days on Market |
| N | 2,392 | 41 |
| Y | 2,016 | 112 |
Data from FMLS, single detached homes closed in 2019 in Forsyth County GA
Homes without pricing adjustments sell 3 times faster…
Homes that were “priced-right” and did not have pricing adjustments sold an average of 3 times faster than homes where the asking price was adjusted.
Understanding how to price a home is an important tool brought to the table by your real estate agent. Most people think that their home is special and that upgrades done and TLC given by the homeowner should result in a higher price. A real estate agent is a good, unbiased lens into what is happening in the market, and what special features may set your home apart.
Price To Sell
Price adjustments can be required, but starting out with the idea that you will simply lower your price until you find a buyer is not a good strategy. You may create the impression that you’re in a difficult financial position, that you’re waiting for the market to come to you, or that others have found problems with your home that may not be disclosed.
Buyers look for value and usually aren’t willing to pay a premium for it. If you’re thinking about selling your home, and want to know all the factors that go into determining value, please contact us using the form at the bottom of the page. We’d be happy to provide you a detailed analysis of the market, and your home.