I am representing a seller with a nice home for sale in Gahanna for $239,900. We started out at $259,900 then lowered it to $249,900. At the current list price his home out competes the vast majority of homes in his price point. The nicer homes are at least $15,000 to $20,000 more, which is enough price separation. The less desirable homes are close enough in price to make his home more appealing.
When we started at the higher prices we hardly had any showings. The activity over the summer buying season was anemic to say the least. This indicated the house was overpriced. We only started to see a noticeable increase in showings once we priced it at $239,900. This was a prime indication that we reached the right price point. Now we were competitive enough to draw buyers to the home.
The difficult part for the seller are the emotions of lost equity and giving the home away. These feeling start to factor in as the price kept dropping. But when you are selling you need to be pragmatic. The list price is a marketing function used to attract buyers to your home. At the correct list price you start to attract buyers and offers. Not only did this seller start to see have more showings but they now have an offer for $235,000.