What happens when home sellers start with too high a price and lower it later

This past week I’ve been busy with sellers. The critical topic is always pricing. In this competitive market, no amount of marketing or home staging will sell a home, if it’s overpriced.

Chicago Average Home Sale Prices as a % of Original List Prices - No Price Cuts vs. 1 or More Price Cuts

Chicago Average Home Sale Prices as a % of Original List Prices - No Price Cuts vs. 1 or More Price Cuts

Above is a chart showing monthly average home sale prices as a percent of original list price for both homes that didn’t need a price cut (dark blue) and those that had 1 or more price cuts (light blue). The data is for all listed homes sold in Chicago including houses, condos, townhouses and co-ops.

On average over the past year, those homes that didn’t need a price cut to sell sold for 95.9% of original list price. The homes that had 1 or more price cuts sold for only 83.8% of original list price.

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ABOUT THE AUTHOR

Fran Bailey Fran Bailey is a Realtor who has been quoted in numerous Chicago and national publications. To schedule showings for any listings, get a free market analysis for your home or to contact Fran email her at fran.bailey@bairdwarner.com or call 773-793-4516. Learn More