Will I sell my home for more by LOWERING the price?

Surprisingly, the answer is YES. With so many overpriced listings buyers only are interested in the most competitively priced homes. Why would they want to try to “lowball” you when they can just as easily work with someone who clearly has more realistic expectations. I have experienced this phenomenon on a number of occassions this year. I listed a townhome in excellent condition for $199,900. Similar homes had recently sold for $193,000 and $195,000. In a declining market, we were getting few showings and eventually a “stupid” offer of $160,000. Then a short-sale in the neighborhood in poor condition sold for $180,000. What to do? We dropped the price to $189,900 and the number of showings drastically picked up. In two weeks we had two offers and got $189,000. If we were still listed in the $190′s, I feel certain it would still be for sale.  Eventually, it would sell for less because of more short-sales, more difficult financing, and deteriorating weather.

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