The Big Risk for Sellers

If sellers do not price correctly, they risk a loss of between $25,000 and $75,000.

Here are the numbers for Vienna home sales in the first two quarters of 2016:

• If a home sells within 10 days, it sells at an average of 114% of assessment*
• If a home sells between 30 and 60 days, it sells at an average of 109% of the assessment or a loss of $36,000
• If a home sells after 60 days, it sells at an average of 105% of the assessment or a loss of $75,000

*assessments vary by neighborhood

We took a look at the price per square feet (PPSF) of Vienna Colonials. When comparing PPSF, you need to compare apples (colonials) to apples (colonials).

• If a home sells within 10 days, it sells at an average of $344 per Sq Ft (PPSF)
• If a home sells between 30 and 60 days, it sells at an average of $333 PSF or a loss of $25,000.
• If a home sells after 60 days, it sells at $317 PSF or a loss of $67,500.

Is pricing critical? You bet your $75,000 it is. Please consult www.caseysamson.com/pricingmodel

Backup material and examples:

Example 1:

Two neighbors had the same size, type and condition home. I priced one home at $875,000 and sold it in the first weekend for $917,000 with very few items on the home inspection. The neighbor listed at $925,000, sat for $855,000 with a $12,000 home inspection bill. A loss of $74,000.

Example 2:

Recommended price was $840,000 and property was listed at $855,000. $835,000 contract was rejected 45 days later. Home was relisted with another realtor and sold for $787,500 with a large home inspection bill. Minimum loss $50,0000.

This article “The Big Risk for Sellers” was written by Casey Samson, please do not copy the content without permission.