How does the property in your neighborhood affect the price of your home?
The value of a larger home is reduced by the influence of smaller surrounding homes.
Sometime owners will brag that their home is the “biggest on the block” as a way of puffing value.
Actually, when a property is oversized for the neighborhood, it often experiences the adverse effects of regression — the value is reduced through the influence of less expensive homes.
In contrast, progression demonstrates that value can be increased by the more expensive surrounding homes. The value of a smaller home is increased by the influence of larger surrounding homes.
How can the correct price attract buyers?
Think of it in these terms. When the price is too high, it doesn’t attract. Like a magnet, buyers are attracted when the price moves closer to market value. As you move your price closer to market it will reach the point at which it attracts buyers and produces a sale.