In this current market of craziness, the proper pricing of a home has become an insurmountable challenge with Sellers. Our boom market gave home owners a mentality of what their home was worth at the height of the market in 2005 and Sellers just can't get whatever that price was out of their heads. The price of what a home would sell for is easy when looking at the facts, but convincing a Seller of that price is quite difficult.
An article in Inman news by Bernice Ross, which is directed at agents, but is also great advice for home Sellers outlines pricing strategies. See http://www.inman.com/content/story.aspx?ID=64177. The four points the article makes include the following:
1) Price a home below what recent comparable homes sold for to be competitive; no buyer wants to pay more for a home than is necessary
2) Don't try to test the market; test the market and you're just looking at wasted time and a price reduction in the near future
3) When reducing your home price, make a serious price reduction that will make a difference in the potential pool of buyers looking for a home; buyers search for homes based on price ranges, so if your home is listed for $475K and you reduce it to $470K, you haven't added a single new buyer to see your home -- however, if you lower your price to $450K, you just increased your pool of buyers for all those whose price maximum is $450K
4) What's your motivation to sell your home; do you "need" to sell or do you "want" to sell -- the longer your home sits on the market when priced improperly the more money you lose as homes values decline
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