Jun 29, 2015
A typical goal sellers have is to get as much money as possible for their home. It can be tempting to price the home high, hoping for a chance to score big. While there’s always a chance, odds are pricing your home above what it is actually worth probably won’t do you much good. There are several reasons why you shouldn’t use this strategy when selling your home.
1. You probably won’t get offers. But your neighbors might.
When you overprice your house, you’re actually helping sell the other homes in the neighborhood that are listed for less. After seeing the high price on your home, potential buyers will probably be more likely to purchase the lower-cost house next door, even if they liked your home better.
2. You lose credibility as a seller.
Buyers are fairly savvy; they have done their research and have a pretty good idea of what homes in your neighborhood are worth. When you price your home too high, people are less likely to even look at your property.
3. Not everyone likes to negotiate.
One reason why sellers price their homes high is the opportunity to negotiate with buyers. The problem with this tactic is that buyers will overlook your house because it’s out of their budget. There won’t be anyone to negotiate with!
4. Your house will get stale.
If your house is on the market for more than 30 days, buyers will start to wonder if there’s something wrong with it.
Real estate agents refer to this as a stale home. Any potential buyers will just sit and wait until you lower the price.
And when you do drop the price, you will probably get less for your home than if you offered a realistic price from the beginning. The longer a house sits on the market, the less you’ll get at the final sale.
5. People won’t even see your listing.
When searching online for homes for sale, people generally set up search parameters by price. If your house is only worth $359,000, but you’re asking $370,000, you won’t capture buyers looking for homes between $350,000 to $360,000 range.
If the home is priced properly, it will show up in the buyer’s search results.
6. The house won’t appraise that high. If you are selling to buyers who will finance the home with a mortgage, the home will need to be appraised.
If comparable recent home sales and current market conditions don’t support your sales price, then your buyer won’t get the mortgage.
If you want to make a little piece of The Island your own, you need more than just a road map and a REALTOR. You need a partner who can make things happen.
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