A Tale of Caution.
The story goes something like this:
All signs point to a market value in the $680,000-690,000 range. The recommendation is to list the home at $699,900 in order to capture as much attention and buyer interest as possible.
"Ok. Well, we'd like to try $730,000 and see what happens."
Then something along the lines of "we can always come down, but we can't go up!"
It's a real estate tale as old as time. In a market that is oversupplied (like 2025), overpricing a home by just 4-5% is enough to leave your home on the pile of stale bread, while properly priced homes fly off the shelf.
Ask yourself this question. If, as a buyer, I had 12 homes to choose from, with all of those homes being fairly similar in terms of size, layout, location, and updates, then what is the differentiator? Price. The homes that are $720,000 or $730,000, are going to be left at the side of the road, while the $689,900 and $699,900 versions are picked up.
Some sellers will exert an impressive amount of patience, waiting for their buyer in shining armour. However, in an oversupplied market, they can rest assured that other new listings will replace those homes that sell, leaving the seller in a perpetual waiting game.
For a buyer to justify paying more, your home must offer something compelling: a better view, a new kitchen, extra square footage, or a newly renovated recroom. Otherwise, why would would the buyer spend the extra?
We are seeing countless examples of this scenario play out. The cycle goes like this:
- List at $745,000.
- 50 days later: reduced to $729,900.
- 25 days after that: reduced to $710,000.
- Another further 47 days: reduced to $699,900.
- Finally, after nearly four months on the market, an offer comes in at $660,000.
Negotiations follow, and a deal is made at $680,000.
Could it have sold faster or for more money? Quite possibly.
In an over-supplied market with cautious buyers happily standing on the sidelines, your home must compete on price. Optimisim and ambition are great, but when it comes to pricing your home in a buyer's market, realism is the path to take.