The listing price of a home is normally determined by the sales price of comparable homes recently sold and the price of active competitors. The next largest factor impacting price is the motivation of the sellers. If sellers need to sell and move quickly, they may be willing to market the property at a lower price to drive more traffic and shorten the sales cycle timeframe. If a higher price carries more weight, the amount of time to sell will likely increase
If the bottom line is non-negotiable, for example a certain price must be obtained to pay off the current mortgage, sellers might be on the market for several months. This is especially common for markets with slow to no activity, or excess inventory of listings.
Time and money almost always become part of the negotiation process, and is determined by the goals of the parties involved. Buyers, who need to move quickly, may pay a premium price to have sellers close and move out at an inconvenient pace. Sellers may take less money if their desired timeframe is met within the deal. The price, closing timeframe, and possession dates always should be clearly outlined within the written purchase agreement.
The process of buying, selling or both can be accomplished smoothly with timing and financial goals discussed and agreed upon with your agent(s). Eliminate headaches and stress by dealing with the balancing act of time and money at the beginning of your process.