Pricing A Home For Sale Too High
Think that your home will sell itself? Think again. Not only does your home have to physically appeal to the prospective buyer, but it also needs to be priced according to market conditions. The proper pricing strategy must be employed in order to ensure that your home gets the attention that it deserves and the right offer that gets the deal closed.
The Price Is Right
The last thing that a seller wants is to go through the headaches of having a home listed for sale with no offers that spans out over a period of months. And, the house becomes stale on the market. Just like bread is best when it is fresh, so is your house when it first comes on the market. The buzz around a new listing can be tremendous if everything is handled correctly. If not, then buyers sit back and watch inventory come and go until the ‘perfect’ house (that is properly priced) comes along.
An agent can market a property all that they want – exhausting every imaginable advertising and marketing option. But, without the proper price attached to the property, nothing will happen. Once the listing reaches 30, 60, or 90 days old, it starts to have a specific stigma in the marketplace. Being overpriced. For most sellers, this is a hard truth to accept and one that they don’t like to hear as it may ultimately affect their bottom line. But, when we think of it in different terms, reducing a price on the property may actually bring in more money. There is a cost to not selling a house. Mortgage payments, insurance payments, real estate taxes and getting on with your life are all contributing factors. If you have a contingent offer to purchase your next house or are simply waiting to begin the next chapter of your life, then it is an even higher cost when your house won’t sell.
Think Like a Buyer
Most industry professionals have a saying and it goes like this: “Buyers will determine the right price for a property. Not sellers.” The actual market price of a home is not determined by the sellers but rather what the market will bear. A major determinate on whether or not a home is priced correctly is the number of days it has been on the market. A general rule of thumb is that if no offers have been received in a 30-day period, then the listing may be priced too high.
The first week that a listing is on the market is critical in terms of having the right price and also being flexible about showing times. In most cases, the first offer received on a home is sometimes the highest offer price. Buyer’s agent feedback is crucial in helping to determine if a price reduction or other changes are warranted. When a home is priced lower than market conditions, then multiple offers may ensue that the winning offer may even be higher than what the asking price of the property is. Pricing a property according to what the market will warrant, while factoring in similar properties that have sold in your neighborhood, will ensure that you receive the highest return on your home.
A stale listing is no fun for the homeowner or the realtor. Today’s homebuyer is value driven. With each passing day that a home sits on the market, it can become less valuable in the mind of a buyer. Currently, it’s a great time to attract buyers as real estate prices remain affordable and interest rates are relatively low. If an offer doesn’t match what you want, then be willing to negotiate. Don’t just completely reject it. It doesn’t hurt for you to provide a counter-offer with your terms and conditions.
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