Why is the pricing of a home so critical?

I've had many experiences with home owners who want to sell their properties for a higher price point then what the market will allow.

The whole idea of offering your property for sale to the world is to obtain multiple offers and the best price possible. At this time of the year, owners who have not sold their properties are frustrated and I've witnessed many price reductions recently and owners have taken their properties off the market and will wait until next year. The problems are for many is that who knows what the market and the economy will be like then ?  Will the "FANG" stocks be up or down ? Will Congress be in Democratic or Republican control and will Trump still be in the White House ?

A recent experience I had was regarding a Greenwich property that had multiple offers, (10 to be exact) which was due in large part to the price which was very competitive and perhaps a bit below the market but sold for more then the  owners and I could imagine. We had a cash deal and closed in 30 days simply because the price for the property was not overtly priced to begin with. Simply said, buyers these days are doing their homework.

Sellers who reduce their price several time may appear to the buyers that the seller needs to sell and lower offer from buyers become the norm and not the exception.  

An appraisal or even two appraisals provided by the seller can really help support the list price chosen and support the negotiating process.

Let's be real.  The homeowner wants as much from the sale of their property. The emotion of marketing and selling a house must be tempered by comparing the value of the upgrades, value per square foot and comparable properties.

Buyers are and can be very picky. We all the know the expression, location, location, location. My expression is value, value, value !

New or newer kitchens and bathrooms are always a major plus. Refinishing hardwood floors and a limited amount of landscaping can be very helpful.

If you overprice your house you maybe living in the property longer then you expect. Remember, the Federal Reserve will be raising rates soon and that will limit the amount of money buyers can borrow for both the buyer as well  as the seller if their borrowing money for a new home.  

James Hoffman is the Managing Broker at Greenwich Connecticut Properties, LLC   at  203-273-1759