Here are a few true stories that occurred in May of 2015. Three comparable university area homes for sale in Fairfield Connecticut accepted offers. The properties and prices were similar in scope, but the paths the sellers took to get an offer were quite different. I’ll assign each house a color instead of using the address to protect privacy. I am privy to the information because my buyers bid on all three of these homes.
A White house with 2,293 square feet, four bedrooms and two and a half baths on .31 acres came on the market for $675,000 the previous November. The listing canceled and put back on the market as a new listing for the same price in January 2015. Over the next 130 days the price was reduced to $669,000 and then 649,000. It was newly listed again in May for $625,000. The sellers accepted an offer of $610,000 which was 97% of their final asking price but 90% of their original price from more six months prior.
A Green house was listed in March for $650,000. It had 2,352 square feet, two and a half baths on .49 acres. The price was reduced to $619,000 and then to $610,000 and was ultimately re-listed with a new price of $600,000. Less than two weeks later, the sellers received multiple full price offers for $600,000. The sellers got 100% of their final asking price, but 92% of their original list price.
On May 12, homeowners listed a Red house for sale with 2,164 square feet, three bedrooms and two baths on .22 acres for $619,000 and accepted an offer the next day!
Since the two homes above sold for 97-100% of their final asking price, and the average sale-list ratio in Fairfield from January to mid-May was 97%, my guess is that the sellers got very close to their asking price, and in one day, not bad!
So what are the take-aways?
Price: You won’t get more by pricing your house much higher than market value. Remember you have to sell your house three times- to the buyer’s agent, to the buyer, and to the appraiser. Buyers may be attracted to your house based on emotion, but their final decision is based on the market data that their Realtor provides to them.
Time: The higher above market value you price your house, the longer it will take to sell, and remember, time is (taxes, utilities, insurance, repairs, maintenance, personal time and energy…) money! The stories above show that in this price range, a list price of 8-10% above the market value is too high to attract an offer.
Since the market is what determines your property’s value, not your personal finances (or Zillow!), price your house within 5% of, or right at market value. This way you can enjoy a fast sale at a fair market price, and get to where you want to go sooner rather than later!
Feel free to contact me for a pricing recomendation and custom marketing plan or any questions you may have about the buying and selling process. I’m here to help!