Litchfield County CT Real Estate Q&A, Pricing Your Home

House for sale New Milford CTThe question we hear most often when listing a home for sale in Southern Litchfield County is…

“But how much should we build in to the list price of our home for negotiating purposes?”

Let me show you some REAL real estate statistics for New Milford, CT.

In August of 2012, homes sold, on average, at 95.5% to their LAST LISTED PRICE.  You think that’s not bad, right?

However, the real number is arrived at by looking at the ORIGINAL LIST PRICE to sales price percentage. That would be 92.3%

Homes that are overpriced sit on the market longer, become “stale listings” and take price reductions before they sell. Why would you want to do that? Why not price it to sell in the first place?

List to sale price in New Milford CT

Buyers actually determine the price of your home these days. We are, after all, in a buyers market. If no more homes come on the market, it will take 11 months for us to sell the current inventory. And these homes will sell for at MOST 92.3% of their original list price.

How does that look? Simple. $400,000 actually sells for $369,200 after sitting on the market. Why set yourself up like that for all the disappointment and heartache? And what if that final amount is less than what you owe on your mortgage? It would really be best to be prepared for that up front, not having the sale halted because you didn’t realize it, or didn’t want to acknowledge that the actual sale price of your home would put you in the short sale category.

By the time you add all your expenses up for the 11 months it may take to sell your home, mortgage, taxes, insurance, perhaps the better idea is to list your home at the price suggested by looking at current comps, both sold and active. Forget about building in room for negotiating purposes! And then there is the hassle of waiting and waiting before someone actually comes to look at your home when it is overpriced, or the disappointment of no offers after showings.

The answer to the question, “how much should we build in to the list price of our home for negotiating purposes”?

NOTHING. List it to sell, not to sit and try to negotiate your hopes away. Get realistic right from the beginning.

 

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