The data discussed in the following article is based on averages and may therefore not apply or fairly represent your particular home.  Always consult a seasoned real estate agent to help you determine the best sales price for your home:

There are currently 45 properties for sale in Lake Country Estates and adjoining subdivisions.  The average list price for the neighborhood (not including lake front properties or new homes after 2005) is $99.72.  However, based on 31 properties that have sold since August 18, 2007, the average sold price per sq. ft. is $78.56.  From this we can draw the conclusion that properties are currently selling at a rate of 31 every six months or 5.2 properties per month.  With 45 properties currently for sale on the market, it should take 8.6 months to sell the existing inventory.  Because the rate at which homes sell will fluctuate from month to month, any figure derived from MLS data is relatively approximate.  Notwithstanding, realtors and market analysts have long used inventory as a measure of the health of a given market.  I personally would rather see the market with no more than a six month inventory.  However, sellers do have options to combat the glut that has given us 8 plus months of inventory.  First, lets look at the difference between $99.72 (Avg. list price) and $78.56 (Avg. sold price).  The situation has it that the average home currently for sale in Lake Country Estates and adjoining subdivisions is over priced by a factor of $21.16 per sq. ft. or about 21%  Another way to look at this, given that the average home on the market is approximately 2976 sq. ft. in size, our average home currently on the market is overpriced by an astounding $62,972.  Yes, I know, it seems unbelievable but its true.  The data is reliable.  So what exactly is it that is happening since homes in Lake Country Estates are selling within 97% of list price.  How did we go from 21% to merely a 3% disparity?  Well, it seems that sellers eventually become frustrated and more realistic when after several months go by, their home is still on the market.  Perhaps in most cases they do not even receive an offer depending on how high the list price.  A good agent will continually go after a price reduction if there is no buyer activity.  A really good agent would have convinced their seller to price the home right in the beginning and would walk away from any listing that is priced out of the market (some agents have no backbone and therefore are not honest with their sellers from the beginning of the listing).  Also folks, an agent can spend several hundred and even over a thousand dollars when they properly market a listing.  When a seller cancels a listing out of frustration an agent will loose their time and financial investment in the listing.  Agents really must be careful of the listings they take.  Therefore proper pricing is just as important to the listing agent as to the seller.  Because buyer agents have access to the same data as do listing agents, and because most buyers have researched the market on the internet an average of 3 months prior to contacting an agent for assistance, it is clear that buyers are educated and know when a house is either a bargain or if it is overpriced.  Also, and just as importantly, buyer agents qualify their buyers and should know what price band their customers are searching within.  So, the buyer's agent will not usually show a $200,000 home to someone who can afford only a $180,000 home.  A seller who artificially inflates the price of their home to leave room for negotiations may not get offers due simply to the fact that buyer agents perform property searches and produce reports from the Multiple Listing System (MLS) in price bands in preparation for property showing.  If a given home that belongs in one price band artificially resides within a higher one, it probably will not come out in the agent's search.  That home simply would not exist to the buyer agent or their buyer unless they happened to stumble on it while driving by and the buyer happened to inquire about it to the agent.  Sadly, it would otherwise not be shown except to those buyers in the next higher band.  Sellers that have put themselves in this trap, can't compete with the houses in the higher band and are left out of the price band that they naturally belong.  They are in essence, running with the "big dogs" and they can't compete in the same arena.  Agents will use the misplaced homes to help sell the the ones that belong in their band.  I've used the line, "if you like this home at this price, wait till I show you the home down the street, its bigger and you'll think its an absolute bargain".  Ultimately, as time goes on...and...on, the seller figures it out, lowers the price as suggested by the agent and their home sells within it natural price band.  Some sellers go through two or three agents before they come to the proper understanding of what is actually occuring.  Of course, the list price must be lowered to a point that it actually attracts the right buyers.  This is also the list price at which the 3% difference is derived (adjusted list price vs actual sales price) rather than the original list price at which the home is offered.  Bottom line is, time and money is precious.  A home priced correctly from the beginning will actually sell for more than a home that is "shop worn" and in far less time.  Good agents know this but often have difficulty convincing sellers of the proper strategy (It is fair to say that this is rampantly occuring between agents and their sellers in Lake County as of this writing).  Other agents simply want something to put on the market at any price hoping that it will all work out in the end (a lot of them get fired...we've had this happen to us).  With eight months of inventory on the market in Lake Country Estates, it is tough to make a house stand out in an MLS search report if it is improperly priced.  A house has to make the cut before its going to be shown (emphasis added!).  Manicured lawns and great decor matter not if you can't bring them through the front door.  Proper pricing is not equal giving your home away.  When you price it right, you stand firm on the price and do very little negotiating, vs the strategy, price it high and hope they come.  If you have a savvy listing agent, he/she will know how to convey to the buyer agent and their buyer how the price was established and why the data show that the home is worth every penny.  And just look at all of those other overpriced homes...

If I can be of service to you or if you have any questions about this article please contact me.

Regards,

Bernie