True Stories.

Home #1

This home is beautifully appointed and in a desirable neighborhood. There is a downside.  There is some major road construction going on very near the house. The owners agree to price the home competitively. The result is over 40 showings within 4 days. That’s a lot of attention. Not one but two offers come in. That’s a good result

Home # 2

This home also looks great and has been updated with remodeled baths and a spiffy new kitchen.  However, the owners wanted to squeeze just a little more than the market would bear out of the price. The result: no takers.  The owners finally decided they really wanted to sell the house and priced the home competitively. The result: an accepted offer and fully executed contract of sale within two days of the new price.

Home # 3

This house needs a little bit of fixing up.  Not a lot but probably enough to need special financing known as an FHA 203(k) mortgage or a “conventional” (i.e., non-government backed) mortgage.  The house is being sold “as is”.  No repairs. I got two calls from two Realtors saying that if their buyer clients follow through with an offer they’ll make the necessary repairs needed to get through the appraisal process. Cool.  The reason: the price is attractive and takes into consideration the cost of repairs.

The Moral of the Story

If you price your home to sell, it will sell.  If you price your home higher than the market for any reason, it will sit unsold until you price it right. Mr. Market is a tough taskmaster. The sad truth is that Mr. Market always wins.