March 15, 2013 5:20 pm
In most cases, a real estate agent will be able to talk you down to a price that’s competitive in the marketplace, but if they can’t, and you choose to go with an over-inflated figure, you need to be prepared to play the waiting game.
Chances are, an overpriced home will also keep agents away from previewing the property. Agents understand the market as well as home values in the neighborhood better than anyone else, and they’re not going to waste their time looking at homes that are unrealistically priced. Also, even if a property does sell above true market value, it may not appraise, and the buyers may not be able to secure a loan.
When it comes to pricing, it’s your right to stay firm with your beliefs, however, if you don’t price a home right from the beginning, you may lose out on prospective buyers who may have been interested in your home. By setting the right price from square one, you’ll avoid having to lower the price after realizing that your home isn’t selling. And a simple price drop to a price-point where the home should have been originally may not necessarily help.
According to real estate industry veterans, the first 30 days a house sits on the market are the most important because that’s when the listing attracts the most attention and gets the most showings. Once a house is “old news,” it’s hard to recapture the flurry of initial activity you would have had with a realistic price.
House hunters will see that the house has been on the market for a long time and may think there might be something wrong with it—other than the price. Therefore, you might be forced to make a significant cut to stimulate some interest and warrant a second look from those who may have passed over the house the first time.
Plus, potential buyers might think you are getting desperate and make an even lower offer.
By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received if you’d priced your home correctly from the get-go.
For more information about pricing your home competitively in today’s market, contact our office today.
Published with permission from RISMedia.