Chasing the market is when a property starts out overpriced and then the listing price is reduced, sometimes more than once, in order to attract buyers. While it was suspected that sellers of overpriced properties ultimately end up with less money, it has been scientifically proven by John R. Knight*, a Professor of Finance & Real Estate at the University of the Pacific in CA. The findings from this research indicate that, on average, properties which end up dropping their listing price take longer to sell and suffer a price discount greater than similar properties. Furthermore, bigger price changes are found to have even longer marketing times and greater price discounts.

Bottom line, the proper listing price will save sellers time and money. Testing the market, ignoring market stats and listing high, going with the agent who gives you the highest listing price, attaching emotional value vs. being realistic, etc. will ultimately cost you as a seller. If you’re looking for a REALTOR® who can help you price properly, then give me a call!

Donna Forest, 603-526-4116

*Knight, John, R. (2002). Listing Price, Time on Market, and Ultimate Selling Price: Causes and Effects of Listing Price Changes. Real Estate Economics. 30:2, 213-237.