“Addition by Subtraction” is for a seller to price a property more aggressively in the beginning to avoid a lengthy days on market period and having to lower the price later on. The longer a property is on the market, the weaker the sellers’ position is perceived.
Whether you’re desperate or not, buyers assume you are and will try to exploit the situation when making an offer and negotiating repairs from the inspection. In addition, maintaining patience and rational decision making becomes a greater challenge for sellers the longer the house sits. If the house is vacant, be sure to consider what 6-12 months worth of mortgage payments, utilities, lawn care, and homeowners insurance for a vacant home is going to cost you. As a property owner, you can end up spending more money in the long run compared to taking a smaller loss up front.
Lets face it, selling a home in today’s market can be a challenging and exhausting process, which is why it’s crucial as a seller to make your situation look solid and strong. The best way to protect yourself is to price the home correctly from the start.