Archive "August, 2026"
Selling a Home is a Journey in Price Discovery
An overpriced home doesn’t just sit. It goes stale, loses leverage, and often sells for less than it would have with an accurate price from the start. Price reductions tend to peak around week six, and homes that linger carry a stigma that hands negotiating power to buyers. Why the First Month on Market Decides So Much. For agents heading into listing appointments, the takeaway is simple: the first price is the most important one you’ll set.
Earlier this year I listed a home in Galena Forest Estates for $1,550,000, and within one day I had it in contract, and it closed 1 month later for $1,500,000. Whereas I listed a different home in our area for $1,550,000 at the seller’s request, and 6 weeks later, after dropping the price by $55,000, it is still on the market. Had it been priced at the correct amount of $1,300,000, I am assuming it would be in contract today.
Selling a home is a journey in price discovery. Sellers may start with a set of comparable homes that have sold recently and set their initial listing price somewhere in that range. If the price is too low, offers from buyers may come in at or above the listing price, and a bidding war may even break out to find the right price. If the price is too high, few or no bids may come in, and the seller may be forced to reduce the asking price to attract buyers. The accuracy of price setting combined with market conditions can lead to a home being sold for more or less than the listing price. The best results for sellers come when their home sells (closes) four weeks after being listed.
What is the best time to buy or sell a home? According to Realtor.com, spring is the best time to list, and fall is the best time to buy a home. The week of April 12-18 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year. At a national level, this week represents a balanced selection of market conditions that favor sellers. By balancing prices, inventory, demand, and market pace, sellers are expected to have a better-than-average selling experience by taking advantage of this best week of the year.
Why is Fall the best time for buyers to buy? This is due to reduced competition and more favorable negotiating conditions. With fewer buyers in the market, sellers are typically more motivated to negotiate on price and terms. This all happens as a result of 4 reasons: Less competition, serious buyers, price adjustments, and more time to evaluate.
The bottom line is to talk to your sellers and come up with a price that is reasonable and has room for negotiating.
