Categories
Sellers

A Caution or Two for Home Sellers

I ran across a couple of cautionary notes for home sellers in some real estate research, so I thought I’d share. Both notes warn you not to overprice your home when you’re trying to sell.

I ran across a couple of cautionary notes for home sellers in some real estate research, so I thought I’d share. Both notes warn you not to overprice your home when you’re trying to sell.house for sale

[H]igher initial overpricing reduces the probability that the property will sell.

Starting high and negotiating down is a poor strategy because you might not sell the property at all. Also, there’s this:

[O]verpricing and extending marketing time, perhaps by rejecting a viable offer, are costly strategies that can contribute to marketing failure.

The lessons: (1) Don’t overprice. (2) If you get a good offer, take it.

Both quotes are from: Johnson, Ken H., Justin D. Benefield, and Jonathan A. Wiley. The Probability of Sale for Residential Real Estate. Journal of Housing Research, 2007, 16:2, 131-142.

By Luke Korkowski (R)

Real estate attorney. Small business investor. Husband, dad, aspiring surfer. REALTOR® and Principal Broker at Square Feet Hawaii.