The Case for Pricing Conservatively
Quick: which is more, 80% of “X” or 95% of “Y?”
The answer: it depends on what “X” and “Y” are.
So, let me fill in some numbers, straight from today’s real estate market: make “X” equal to $325k, and “Y” equal to $289.9k.
Now, it’s possible to calculate the products of those two equations: $260k and $275k, respectively.
Price as % of List — or, Listing Lessons
Not only did the more conservative seller net more money, they likely did it much faster, with a lot fewer showings — and no gut-wrenching price reductions!
Added bonus: the Seller who got a higher percentage of a lower asking price probably yielded less on the subsequent Inspection, too.
That’s because — at least in my experience — Buyers who purchase stale and/or overpriced listings tend to negotiate any inspection issues more aggressively.