CENTURY 21 Big Sky Real Estate

Home owners tend to overestimate the value of their own house. This shouldn't come as any big surprise, considering they have an intimate understanding of the work put into the home and an emotional connection to the space. Further, every home seller is understandably motivated to get the highest possible sale price. When you combine these two things together, you can see why some sellers want to set their initial listing price at an unreasonably high number and work down from there. At first glance, it might not seem like there's any downside to this strategy; after all, you can always drop the price later if you receive no offers. Unfortunately, a recent study by Redfin shows why this line of thinking is not only flawed, but can also actively hurt your home sale. They found that most buyer interest in any home listing comes in the first few days on the market and rapidly falls off. Even when the listing has a subsequent price drop, that initial burst of interest is never recaptured, meaning the consequences of an unreasonable initial listing price can't be undone.