Patrick Carlisle, Chief Market Analyst at COMPASS, just released a report comparing homes with and without price reductions and the impact of price reductions/overpricing. The report analyzed over 50,000 home sales over a 12-month period in five Bay Area regions comprising 10 counties. 

The study confirmed that homes requiring price reductions before selling typically take much longer to sell and sell for significantly less than homes priced correctly. In fact, homes that were reduced in price sold for an average of 10% less than homes that were not reduced in price.

Other negative consequences for sellers include lengthy days on market. For buyers, overpriced homes can provide opportunities as you will almost always face less competition from other buyers - often no competition at all - which eliminates the need for overbidding and allows for more aggressive negotiation of the purchase price and terms of sale.

In summary, it is generally better to list your home at a price close to its market value, as this will help you sell your home faster and for more money.

When you hire our team to buy or sell a home, we create a comprehensive market analysis to estimate the current fair market value of the property. We then work together to create a thorough purchase or sale strategy based on this value. 

If you would like to discuss this further or have any questions, please contact our team.

Dana & Team