Factors determining the selling time for a property and the price received:

• The Listing Price
• The Condition of Your Property
• Terms
• The Agent Selected
• The Location
• Available Financing
• Supply and Demand
• The Competition of New Construction
• Economic Trends

The first four items on the list:  listing price, condition, terms, and the agent selected, can be controlled by the seller.  The time necessary to sell a property can be shortened by selecting a competitive price, improving the condition of the property, being agreeable to various terms in a contract and selecting an agent who has the expertise and enthusiasm to market your property aggressively and wisely.

Factors Not Affecting the Value of a Property:

• Original Purchase Price and Costs
• Cost to Re-build a Similar Home Today
• Total Costs of Improvements
• Personalized or Overbuilt Improvements
• Personal Attachment

The original purchase price of a property was determined in the marketplace at the time of the purchase.  Improvements made may or may not make a difference in the way a potential buyer looks at the property today.

Proper Pricing

Houses sell quickly and usually for the most money when they are priced properly in the beginning.

Overpricing

• Reduces activity
• Reduces advertising response
• Loses interested buyers
• Attracts the wrong prospects
• Eliminates offers
• Helps sell the competition
• Can result in appraisal problems
• Extends market time

The Consequences of Overpricing Your Property

Prospective buyers are seldom looking at only one house.  They will often spend many weeks, and even months, comparison-shopping for a home.  If your property is priced higher than your competition, the following may occur:

• Overpriced properties miss the opportunity to compete most effectively in the period of peak attention during the first few weeks of the listing period.
• An overpriced property will not be shown to prospects who would be interested if the property were competitively priced.
• Overpriced properties help sell those that are priced competitively.
• Overpricing almost invariably leads to the need for additional time to sell the property.
• Offers received after the property has been on the market for a long time are generally much lower than those received early.  Buyers wonder why the property has not sold.
• Appraisers may have difficulty justifying the price.
• Lenders are reluctant to provide a loan commitment for a property that has sold for more than comparable sold properties.