Since 2012, many seller’s told me: Let’s test the market. They mean to start selling with a high price and see if someone takes the bait.
I did some research to see what would it mean to test the market. Analysing thousand of properties sold and their original listing prices, I found that houses that were originally overpriced end up selling for between 10-20% less than properties that were priced close to market price from the start.
My experience shows that the first thing buyers ask me before making an offer is “How long the property has been in the market” and “What was the original listing price?”
If property has been more than 2-3 weeks or price has been reduced substantially or multiple times buyers always shoot for less.
We live on times that information is available everywhere and unless a house has unique distinctive features a price range for sale can be determined with the appropriate research.
For that reason, when I am working with a Seller I analyse all the comparable sales, I visit similar active listings and look for unique features to provide a price range that will get the most money for the seller. I instill in my buyer agents to do the same before submitting an offer to purchase.