Here is something we hear from sellers too often, "the initial listing price is not that important because the price can always be reduced later." Many homeowners believe this, but this is a myth, it is not true.
If most buyers first viewed your house because of a newspaper ad, a magazine, the Web sites, brochures, or the sign in your front yard, the initial listing price probably would not make a difference. The house would always be "new" to those seeing it.
However, most buyers see your house for the first time because the real estate agent showed it to them. Often a Realtor that works with homebuyers is known as a “buyer’s agent.” When you first put your home on the market, these agents pay attention. It is like going to a fancy steakhouse and your server brings the steak to your table while it is still hot and "sizzling."
New listings receive priority; the MLS puts new listings on the MLS "hot sheet” and sent to real estate offices for circulation. The MLS computer database identifies the listings that are new. Your listing agent may hire a service to distribute flyers to all the buyer's agents. There are also office previews and MLS tours.
Sure, you can lower your price later, it can only be a "new listing" once. You only have the "sizzle" once. If the house is priced correctly for its condition and location, agents will show it to their clients, but if your house is overpriced, no one will come to see it.
Dropping your price later deprives you of the best opportunity to market your house when it still has "sizzle" and makes potential buyer wonder "what is wrong with this home?" So remember, it is critically important to price your home correctly.
Let one of our Realtors help you determine a suitable listing price. Have an agent get things started by performing a property price analysis to determine what your property is worth in the current real estate market. Start Your Home Price Analysis.