Tuesday, June 25, 2013 / by Teresa DiPeso
Are there any negative effects from changing the listing price of a property? This question haunts home sellers every day.
Professor John R. Knight investigated the impact of changing a property's listing price. The findings from his research indicate:
1. On average, properties which experience a listing price change take longer to sell and suffer a price discount greater than similar properties.
2. Bigger price changes are found to experience even longer marketing times and greater price discounts.
3. The greater the initial markup; the higher the likelihood that any given property will experience a listing price change.
Sellers should be aware of the critical necessity of getting the price correct from the start. Sellers wanting to over list, will ultimately take longer to sell and will sell their property for less, on average, according to Knight.
Knight also found that Brokers/Agents’ desire to take a listing and get the price right later are not doing their sellers any favors. Getting the list price right from the beginning is critical. Sellers should work with an agent understands local market conditions and utilizes the tools and resources to maximize the home owners sales price.
Many Agents base their Broker Opinion of Value on a CMA (Comparative Market Analysis). A CMA is based on what homes have sold for in the past and does not take into account a number of other variables including appreciation, absorption rates and neighborhood buying patterns.
The JERSEY SHORE REALTY GROUP uses a Pricing System designed to get properties sold quickly and for up to 18% MORE money than traditional real estate agents.
We will SHOW you with statistical data:
THE STATISTICAL ODDS OF SELLING YOUR HOME
THE LENGTH OF TIME WILL IT TAKE TO SELL YOUR HOME
THE BEST TIME TO SELL YOUR HOME
THE PRICE TO GET YOUR HOME SOLD IN TODAYS MARKET
Selling your home is one of the biggest financial decisions you will make in your lifetime. Don’t leave the outcome to chance, contact the JERSEY SHORE REALTY GROUP and put our knowledge and experience to work for you. You have nothing to lose but money itself!
 Knight, John, R. (2002). Listing Price, Time on Market, and Ultimate Selling Price: Causes and Effects of Listing Price Changes. Real Estate Economics. 30:2, 213-237.