Hint: It’s the MOST expensive house on the block
Here is a Bloomberg article about the most expensive house in New Jersey. Despite it being on the market for since 2010, it still has not sold.
There is both a “science” and an “art” to pricing a home for sale. If it is done incorrectly, homeowners will be put into a tough situation, which we call: “The MOST expensive house on the block scenario”.
The MOST expensive house on the block will always have showings. However, since there are other competitively priced houses in the neighborhood, this home is usually the last to sell, if at all. Having an unsold home is never good because the homeowner still has to pay the mortgage, taxes, etc.
Instead, homeowners needs to factor in the sale prices of comparable homes in the area before considering how much they’ve invested in their home. This is where a good real estate agent can help. Make sure your agent shares his/her strategy as you work with them.