Should You Start Out with a HIGH Listing Price?

Today was just the most perfect fall day on Cape Cod. I did the last of the fall cleanup. The fallen leaves into the compost pile, cut back the Montauk Daisies to get them ready for next year, and watched Charlie, my Yellow Lab have a ball. I brought in the last of the flower pots and set them in the front of the East door in the family room to get the morning sun.

Cape Cod Real Estate Updates:


Should You Start Out with a HIGH Listing Price?
Many sellers think there is nothing wrong with pricing a property "too high" when the listing is new because they can always lower the price later.

Because of the change in real estate market conditions, more sellers are competing for fewer buyers. So once again, it seemed important to challenge a long-standing "myth" of real estate.

"The initial listing price isn't that important because the price can always be adjusted down later."

Many homeowners believe this. It is a myth.

Buyer's agents are not swayed by advertising. They look at the needs of the client, where the client wants to live, location, condition, and other details of the property...

And most importantly....price.

If your house is overpriced, agents are going to show similar homes that are priced more attractively. Your listing will get passed over.

You may be thinking, "But I'm willing to negotiate!"

Buyers aren't thinking in advance about how much you are willing to negotiate. They are comparing your asking price to other asking prices.

Plus, when your house is new on the market, you may not be willing to negotiate as much as you will later, once you've realized your error. Keep in mind that statistics show, quite often, the first offer is the best offer.

So what happens if you overprice in the beginning and get more realistic later?

You don't have all those important Buyer's Agents looking at your listing because it is NEW. A price reduction later in the listing cycle often gets overlooked. It is just one of many listings, not one of a few new listings.

Many sellers still mistakenly believe they should "price it high" because they can lower the price later, if necessary.

That is not the best strategy.

I hope you all had a Happy Thanksgiving. Today is turkey soup day. I put a lot of scallions and a dollop of cranberry sauce on top. Something about the combination. The cranberries have been fantastic this year. Maybe because of all the rain. It is really something to see when the bogs are flooded and it is just a sea of red berries. Truly unique to Cape Cod.

Cape Cod Real Estate Updates:

I am having an open house today in Orleans at 42 Nickerson Rd. It is a lovely home completely renovated in 2004. There are 4 bedrooms and 2.5 baths with a finished basement. Click here to view details and get directions.

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