Correctly Pricing Your Property and When to Reduce the Price

Housing prices are not rising at such rapid pace at this time.  The market likely will never catch up to the price you are hoping to get for your home if you have overpriced the property. Waiting for the one buyer to come in and give you your price usually is a poor strategy if you have any motivation to sell.  Typically, the longer the house is on the market the lower the sale price.  Unless you are willing to wait several years for a 15% increase you are much better off considering the holding cost of a home and reconsidering pricing.  If you are making $2500 mortgage payments each month you will be spending a minimum of $15000 if you hold your property for six months.  This is what you will spend without considering utility costs, maintenance, cost and having to be responsible for any problems that should arise such as a faulty air conditioner or heating unit.  This could also lead to another $10,000 in expenses.   If you have any motivation to move within a reasonable amount of time it makes much more sense to reduce the price of your home sooner.  The longer you wait the more risk of more expenses and the house starts to “look” old to potential buyers.  The benefits of a price reduction usually always outweigh the risk of waiting too long to get your price.

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