We saw quite a few homes on Realtors' tour today, but two stood out in my mind. They were in the same area of Sunnyvale, but one was priced higher by about $15,000. The lower priced home was larger, fully remodeled, and staged. The more expensive one was cluttered and needed work in the kitchen and bathrooms. Despite the listing agent's efforts in adding flowers to the yard, and bringing refreshments to the tour, there was no way to keep from comparing the two. In a slow market, condition is important, but price is everything. Hank Bailey recently wrote a post debunking the myth that you should always price your home high and negotiate down.
He said "Pricing too high can be as bad as pricing too low. If you list too high, you'll miss out on buyers looking in the price range where your home should be. Offers may not even come in, because buyers who are interested in your home are scared off by the price and won't even take the time to look at it. By the time you correct the price and list your home at its fair market value, you will have lost that window of opportunity when your home draws the most attention from the public and real estate agents; i.e. the first 30 days that it is on the market. A well-trained real estate agent who looks out for your best interests will consult with you on your home's fair market value and different pricing strategies for the current market."
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