We Can Always Come Down In Price, Right?

Here is a typical example of what can occur when a home is priced too high in a competitive market: 

When a home sits on the market for a long time a buyer may think the seller is getting desperate or there is something wrong with the home. 

The buyer will offer a very low price, knowing that it will be considered.

Market time: 16 months 
List price: $100,000 
Maintaining Expenses*: $13,000 
Buyer negotiates: $6,000 
Fees**: $7,560 
Net to seller: $73,440 

When a home is priced correctly it’s more attractive to buyers than homes that are in the same price range. Buyers will be more inclined to hurry and buy it because it’s new on the market and won’t last! 

Market time: 3 months 
List price: $85,000 
Maintaining Expenses*: $2.400 
Buyer negotiates: $2,000 
Fees**: $6,300 
Net to seller: $74,300 

The seller would receive $860.00 more in the second scenario by pricing competitively! 

* mortgage interest, insurance, utilities, taxes, etc. 
** commission, transfer tax, title insurance, etc.