One of my primary responsibilities is to share the latest trends and offer tips to help buyers and sellers in every way possible. This month KCM’s (Keeping Matters Current) blog features a post by Ken H. Johnson, Ph.D., Florida International University & Editor of the Journal of Housing Research, well worth sharing and some food for thought for my community clients and friends.
The good news — the housing market is on the upswing and starting to show signs of recovery. This means that sellers often think they can list their property at a higher price and then adjust when necessary. But is that really the best strategy? Are there adverse effects from changing the listing price of your home? This is an age-old question that has been troubling real estate professionals as well as sellers almost every day. Research scientifically conducted by John R. Knight, has no clear results or consensus, but his conclusions certainly ring true.
Knight’s findings are very interesting as he investigates changing a property’s listing price. The research indicates that, on average, properties which experience a listing price change take longer to sell and suffer a greater price discount in the end than similar properties. What’s more, the bigger the price change the longer the marketing time and ultimately even greater price reductions. Finally, as for which properties are most likely to experience a price change, Knight concludes the greater the initial mark-up; the higher the likelihood that this property will experience a listing price change.
Bottom Line Implications
Sellers as well as Brokers/Agents must be aware of the importance of getting the price correct from the start. That’s where my team and I can help – we have our pulse on this market and the experience and knowledge to get your home sold quickly and profitably. At our initial consultation, we will give you all the information needed about the market in your particular neighborhood; discuss timing and a personalized marketing strategy. After all, according to Knight, sellers wanting to over list will have a house sitting longer on the market that will end up selling for less.
Interestingly, Mr. Johnson’s research shows that changing the listing price up or down both lead to similar results found in Knight’s work – longer marketing times and lower selling price. Count on my team to get the price right at the start and to work incredibly hard to get your house sold.