Lower price equals value

Posted at 7:53 AM, Mar. 29, 2008

Study finds low list price works

New data from a New Jersey consulting firm suggests over-priced homes not only take longer to sell, they consistently sell for thousands of dollars less than similar homes that were priced lower in the first place.

The study by Otteau Valuation Group measured and analyzed more than 15,000 transactions annually over a period of several years. The same pattern emerged in every price range, regardless of whether the properties in question were entry-level or luxury million-dollar homes: Sellers who priced their home below the market from the beginning, often received a higher price and a faster sale.

"We haven't hit bottom yet," said Jeffrey Otteau, a long-time consultant and appraiser. "For every buyer that comes to the market there are two, or three or more sellers who put their home on the market."

Read the entire article at NJ.com