The importance of pricing your home correctly the first time it comes on market cannot be stated enough. Determining the best asking price for a home can be one of the most difficult aspects of selling a home. If your home is listed at above market value, you will miss out on prospective home buyers who would otherwise be great options to purchase your property. If you set the price below market value, you could potentially lose income and sell the property for a price that is not the optimum value for your home.
Studies have proven that most home buyers are likely to purchase property at market value than at above market value. The percentage increases as the price falls below market value. 75% of potential home buyers will purchase a home at market value while only 1% of home buyers will purchase a home 10% above market value. Pricing your property at market value will allow you to expose it to a larger buyer pool and increases your odds for a sale that reflects the market value of the home.
Setting a realistic price at the beginning is incredibility important. A property attracts the most attention, interest, and excitement from the real estate community when it first comes to market. You never want your property to become stale.
When you put a home on the market that is improperly priced, the listing misses out on the peak interest period and could result in your property languishing on the market. This has the potential to a below market sales price or worse no sale at all. Reducing the price later will not increase interest unless you severely reduce the price. Your best chance for the best sale is to have the price reasonably established when it is new on the market.