We had an interesting discussion at a sales meeting today, about what people think when they see a home that has been for sale for a very long time? Or one that has been reduced in price over and over again? The consensus answer was that it depends, of course.
If you are a sophisticated buyer, and you look at the property on Zillow, you can see the history of listings and sales. People who discover price change after price change often assume that the property was very overpriced, or that there is something really wrong with it. Other homebuyers, especially those who are not as internet-dependent, may never see the history; however, those people may also forget about the house completely, unless it gets brought to their attention by way of advertising a price change.
Sometimes a tortured listing history does mean that is was overpriced. Because the listing agent is not always known, it could be a reduction due to listing with a new firm. Sometimes, there is something wrong with a property, although usually a real problem leads in the end to lowered price. The point is that we don't actually know why the price kept changing, or why the property didn't sell quickly, but we all draw our own conclusions.
Sellers sometimes take properties off the market and relist them, so buyers can see them again at the new price. That doesn't always work though, thanks to the aforementioned price history. So what's the answer? Don't overprice to begin with, because a quick sale is always better. And the first few weeks are the best time to sell. And the first offer is often the best. Need we say more?
