In a market with ten months or more of inventory it is extremely important to correctly price your home. If it is even slightly overpriced it will most likely prevent it from selling. Remember, ten months worth of inventory doesn’t mean that your home will sell in ten months. It’s not like we will run out of inventory in ten months so that your home will sell because it is the last one on the market.
What happens is that homes are always entering and leaving the market. The homes that are priced to sell move fairly quickly and are replaced by others. The overpriced houses can sit on the shelf forever without a sale. In Wasilla and Palmer, (not the whole core area), the median sales price for the 1,005 homes sold in 2006 was $225,000. The median asking price currently is $259,950. Any home that is priced $35,000 too high is going to be on the market for a long time. In fact, if a house with a market value of $225,000 is actually put on the market at that price, it will likely sell in 60 days or less. However if the same house is marketed at $260,000, it will likely take a year or more to sell it if the owner doesn’t lower the price.
Five common methods to determine the price.
1. Some people choose the price of their home based on the amount of money they want to walk away with. To them, it doesn’t matter how much the house is worth, they need a certain amount in their pocket and that is how they determine the price.