Selling High? Caution!
Establishing Your Selling
If you start out with too high a price on your home, you may find that
you have just
added more stress to yourself -- and selling a home is stressful enough.
Listing agents market and promote your home to many of other local
real estate agents who work with homebuyers, dramatically increasing
your personal sales force. During the first couple of weeks your home
should be a flurry of activity with buyer’s agents coming to preview
your home so they can sell it to their clients, providing
the price is right.
If you have overpriced your home then you can be certain that fewer
agents will be willing to preview your home - They are Realtors and it
is their job to know local market conditions and home values - Their time is better spent previewing homes that
are priced realistically and if your house is priced dramatically above
market why would they waste a prospective buyers time when they can
show an equally comparable home priced for less.
Benefits of Proper Pricing
your home sells faster you will save money (mortgage payments and
other ownership costs).
Proper pricing reduces these demands on you by helping your home sell
faster. You may already know how much energy it takes to prepare your
house for showings (cleaning, etc..)
Exposure to more buyers
At fair market value you open your home up to more people who can
afford the asking price. Sellers who list at a higher price hope that
they’ll find the one purchaser who will pay it but often do not
realize that they have discouraged many potential buyers who could
have afforded the price that the seller will end up accepting at a
Increased salesperson response
When salespeople are excited about a home and its price, they make
special efforts to contact all of their potential buyers. Knowing that
it is priced properly for its market, they expect it to sell soon and
encourage their prospects to act quickly. Their excitement is
Better response from advertising and sign calls
Ad calls and sign calls to Realtors turn into showings when price is
not a deterrent. Most serious prospects are well educated about asking
prices in the areas they are seeking, and will not waste time on a
home they consider overpriced.
Attracts higher offers
When a home is priced right, buyers fear they might lose out on a good
home, so they will be less likely to make "low ball offers."
More money for the seller
If a home is priced right, the excitement of the market produces
higher sale prices. You net more both in terms of actual sale price
and in mortgage payments and other ownership costs.