Overpricing Can Be Costly!
While it is tempting as a seller to ask for the highest price possible (been there, done that), we suggest that you be very careful in pricing your home. The fact is, the homes priced right usually sell for the best possible price. While pricing high may be OK in an appreciating market, it can be the worst decision you can make in a declining market. Here are few reasons why you must not price your home wrong:
You will lose the excitement/momentum that a new listing generates: Real estate agents are working with buyers who have seen what is currently on the market and are waiting for something new to be listed. Therefore, the most activity will take place in the first 30 days of a listing. Your home will probably receive its highest and best offers during this time. After that initial period, the only people to look at your home will be new buyers in the marketplace.
You will lose the most qualified prospects: Buyers won’t be able to “make an offer” because they probably won’t see your property. They will view the properties that are priced within their purchase power range, knowing that they cannot afford anything above their price range.
Overpricing helps sell other, more competitively priced homes first: Your home may be used to demonstrate the good value of other properties. Your objective should be to enter the market in a position that will attract prospects, not drive them away.
Your home may become stale on the market: Prospects may wonder why it has been on the market so long or if something is wrong with the property, even after you lower the price. You may even have to settle for less than market value. A house takes on a reputation surprisingly fast, so don’t wear out your welcome on the market.
You lose a strong negotiating position when your house is on the market a long time, both financially and mentally: Prospects will not “rush” to make an offer on an overpriced property, and you may feel compelled to accept less when they finally do.
If you do get an offer, the contract may fall through because of appraisal problems: The lender must justify the price to the market. So even if the buyer pays the price, the lender may not approve the mortgage because of the appraisal.
As you can see, there are many reasons why you should price the home right. Don't choose an agent who is trying to buy your listing - by giving you an unrealistic listing price. This one mistake can cost you thousands. Always price your home logically, not emotionally.
Call the professionals at On Track Realty at 732.494.2211 to discuss your real estate needs. We promise to give you an honest evaluation, even if it means losing your business. We would rather turn down you business upfront by being honest instead of taking your listing and letting you down later. http://www.ontrackrealty.com/
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