The real estate market moves based on supply and demand.  If you understand this, you will never have a problem buying or selling real estate.

Over 20% of Selling Price

If a property is overpriced, absolutely nothing happens.  The sellers see no showings, the agent sees no internet inquiries and typically the sellers blame the marketing and the agent blames the market.  The way to tell if the property is overpriced is to look at the number of “virtual visitors” from the internet.  If this number is low or stagnate, it means the buyers are finding other properties that are better priced

Up to 20% over Selling Price

Sellers will see some virtual activity, but their lockbox will sit quietly in the same spot as buyers and their agents pass over these lockboxes in pursuit of the properly priced properties.  Virtual visits are wonderful as over 94% of all buyers start their search on the internet.  These sellers can rest assured that it is not a marketing problem if they are getting virtual visits.  However, if no one is knocking on the door for a showing, it really can only be one thing.

15% Over Selling Price

A seller will see a ton of Activity on the Internet if the price is set here.  This activity should not be confused with interest.  These sellers might get lucky, but showings will be few and far between. This problem does not exist when inventories are low as buyers will correct bad pricing.  It should be noted at this level that the selling time will take longer and that if a buyer does get an offer, it will be at fair market.  Sellers usually react to these offers as just too low, instead of admitting they are just too high.

10% Over Selling Price

Close but no cigar!  Hilton Head Island sellers will get tons of showings at this level, in fact, they will become frustrated turning on all the lights on over and over again and not ever getting an offer.  While luck might make it happen, a small tweak in price will bring fair market value faster.  With an average list to selling price of 5% for homes under 2 million, sellers that tweak their price will sell faster, but never for more.  Amazing how this works.

Selling Price or Less

This is the price that causes multiple offers and buyers competing to win this home.  A few years ago, this type of pricing was necessary for sellers as the market was still declining and it put the property in front of the buyer and ahead of all the rests of the property.  In most markets on Hilton Head Island, this is not necessary today.