Sometimes it's just too difficult to pinpoint an exact list price for a property. For whatever reason, good examples of similar type properties haven't sold recently and too much interpilation is needed to determine an exact price. Usually a reasonable price range can be determined. From there, it makes sense to list at the higher end of the range as to not leave any money on the table (sell short of what the home really could have sold for). When approaching pricing in this manner, it is important to make sure you are keeping a close eye on showing activity, internet hits and offers.
I recently listed a patio home for sale that fell into this mysterious pricing range. As mentioned, we listed the property on the higher end of what we thought was possible. After 2 weeks on the market we had 13 showings and one offer. The property was listed for $325.000. It was a clean property with slightly dated elements and pictures that make it look worth going to see. The offer that came in was for $310,000. We countered back half way at $317,500. The buyer didn't even counter back and walked away changing their mind. I use this example because it clearly shows that the market had its say. I believe what they were saying was, this property is priced too high for its condition. We dropped the price $5,000 and it sold less than a week later for $315,000. The evidence shows that it was priced $10,000 too high and that was high enough to make 12 of the 13 buyers shy away from even making an offer. Had we not reduced the price, I believe we would have experienced the same results with no or low offers until the price came into the range that was within the buying market sights.
One additional point that is worthy of mention is that it is important to make a change if needed before too many days on market begin to stigmatize the property towards lower value than it deserves. Shooting for the stars for too long could ultimately be detrimental in the long run.
The moral of the story here is to price your property the best you can, watch the listing activity and make adjustments if needed and don’t wait too long (10-18 days on market depending on market timing for specific areas).