The Anchoring Effect and Asking Price in Real Estate

Anchoring

There are a number of theories and philosophies when it comes to pricing real estate for sale. Most real estate agents will tell you that the best practice is to list a home for sale somewhere around what they feel is market value – or even just a bit under market value, to foment a bidding war. However, there’s a … Read More

Sales to List Price Ratio by Weeks on Market

Sales to List Price Ratio by Weeks on Market

Is it true that the longer it takes to sell your home, the less you are likely to receive for it? There’s a lot of evidence that indicates this is in fact true. Check out this chart, which illustrates the sales to list price ratio by weeks on market: Source: National Association of Realtors 2013 Profile of Home Buyers and … Read More

Real Estate Price Reductions and Market Time

Price Reductions by Time on Market

How important is it to set the price correctly when a home is marketed? One way to answer this question is to look at how long a home takes to sell, using the number of reductions as a metric, rather than price differentials which can vary from market to market. In the 2013 National Association of Realtors Profile of Home … Read More