The Wiggle Room Myth

When it comes to negotiating, especially on something as big as the sale of a house, none of us wants to leave any money on the table. So I'm not surprised when a seller tells me they want to price their home a little higher than they know they should - to leave a little "wiggle room" when it comes to negotiating.

Anyone with much real estate experience knows this is a fool's strategy.

Competitively priced properties (those priced closest to the "market value") generally sell for closer to asking price and in a much quicker amount of time.  The most interest a property has is when it's first on the market. Mispriced properties miss out on the most active buyers.

Overpricing a home (Courtesy of Gary Keller)

Overpricing a home (Courtesy of Gary Keller)

I decided to look at the Leavenworth real estate market and see how this played out in 2010.

I didn't look at all 87 closed sales, but I did look at a random sampling of homes. I chose 20 homes that had price reductions (those with built in "wiggle room") and I looked at 10 homes that sold without price reductions.

Guess what I found?

 Overpricing Leavenworth Home

The homes that didn't require a price reduction sold for 96.7% of the original asking price, but those that needed a price reduction sold for 75% of the original price. On a $300,000 home we are talking about a $65,000 difference.  They also took an additional 270 days to sell.  That could be another $10-$12,000 in mortgage payments over that same time!

Over and over again we see sellers missing out on selling their home because of overpricing.

 

 

 

**********************************************************************************************************

Required Disclaimer

NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.

Add new comment

Allyson and Geordie Romer

Leavenworth real estate agents - Allyson and Geordie Romer

For over a decade, Allyson and Geordie have been serving clients in the Leavenworth-area real estate market. Together, they work tirelessly to stay on top of the regional market and present the most relevant opportunities to their clientele.

When not in the office, they can be found exploring the endless recreation opportunities of the area in all of its seasons.

 

Testimonials

 

Geordie provided excellent real estate representation! We appreciated his detailed knowledge of the market, his up front and honest approach, and his negotiation skills.
As reviewed on Zillow  – 

- Laura Anderson

 

 

As “west siders” looking for a getaway near Leavenworth, Geordie provided insight … his knowledge of design features important in a “snowy winter wonderland” was appreciated. Thanks Geordie!
As reviewed on Zillow  –
 

- Jean Stern

 

 

Geordie made this somewhat complicated transition easier for us…going above and beyond to help us work through issues that came up during the sale of our parents home. We appreciated his knowledge, attentiveness to details and his willing spirit.
Our family is grateful for Geordie!
As reviewed on Zillow  – 

- Terry Foster

 

 

Geordie was great in every way. We have been looking in the Leavenworth area for some time, and Geordie was absolutely the best for local knowledge, history and depth on neighborhoods, developments and the local market trends. He was very quick to respond (even when he was on his vacation) and worked very diligently to get all of our questions answered in a very timely fashion. We would recommend him highly to anyone looking to buy or sell a home. Very friendly, and helped us navigate all of the local options before we made an offer on the property that we purchased. Thank you, Geordie!

As reviewed on Zillow  – 

- Ryan Olsen

 

 

It was such a pleasure to work with Geordie and his wife, Allyson on our cabin purchase. They showed us a variety of locations, listened to what we wanted and helped us find the perfect match. Everything was smooth and not stressful, just relaxed and easy. We would definitely recommend Geordie and use him again if the need arises!

As reviewed on Zillow  – 

- Cammie Schlosser

 

Moving to Leavenworth?

Are you looking for a cabin or a condo in Leavenworth that your family can use as a home base when climbing, skiing or hiking around Leavenworth or Lake Wenatchee?

Maybe you rent a house here and have decided to stay, surprised how a summer of rafting somehow turned into seven years.

Maybe it’s time to escape the hustle of the big city (and its rain) and move to Leavenworth with its four seasons.

Maybe you bought a condo years ago, don’t seem to use as much, and it’s time to sell.

Whatever your motivation, we are here to help. If you are buying a home, the best place to start is with our Homebuyer’s Guide to Leavenworth.