Tags: Business News, Community & Outreach
February 22, 2014Wow, that sounds like a cheesy sales pitch you might hear on the radio. But the reality is that many people end up taking less for their home than they should. A great deal less in some cases.
You see, there is your original list price – the price at which your home hits the market. Then there is your list price – the price your home is listed at when you go under contract. And finally, your sales price.
When you look at the sales price to original list price ratio for homes sold with a price change and compare them to homes sold without a price change, you find that homes sell for a higher percentage of asking price without a price change. In other words, if they go on the market at the right price; the sales price ratio will be higher.
A little over half of home sellers in North Fulton last year earned on average 7.3 percent less than the rest of the market. It's a larger spread for home sellers in Forsyth County. Last year, on average, 69 percent of sellers in Forsyth County sold their homes for 16.5 percent less than the rest of the market.
To put this in terms of dollars; the average sales price in North Fulton is approximately $400,000. So more than half of sellers potentially gave up $29,200 on average. In Forsyth County, the average sales price for a single-family home is approximately $263,000, which means most sellers gave up on average $43,395.
It reminds me of that commercial. When you list your home too high, it takes longer to sell your home. When it takes longer to sell your home, you end up dropping your price. When you end up dropping your price, you lose $43,000. Don't lose $43,000. List your home at the right price.
Bob Strader is a local realtor with the NORTH Group of Keller Williams Realty. Visit his blogs liveincumming.com or liveinalpharetta.com or email him: firstname.lastname@example.org.