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Dangers of Overpricing Your Property Pricing is everything. It’s no secret that a properly priced property sells faster. Over price your property and now it’s in competition with property that may be newer, larger or have more amenities than yours. The only thing you are doing is helping your competition sell their property. Unless you are in no rush and have lots of time expect your home to sit on the market for a longer time and in the long run cost you money. I know it could be dangerous for me to say to a client that “price isn’t everything” but hear me out carefully. When you start out trying and hoping to sell you house with too high a price on your property, you may have just added to your stress level and selling a piece of property is stressful enough. If you price your property at fair market value, you are exposing it to a much greater percentage of prospective buyers and you increase your chances for a sale. Most sellers aren’t aware of the “behind the scenes” action taking place once your property is listed. Contrary to what most people believe listing agents aren’t usually selling your property to a home buyer. A Realtors ® job is to market and promote your property to all of the other agents who do work with homebuyers, drastically increasing your personal sales force. IF THE PRICE IS RIGHTDuring the first few weeks your property should be busy with buyer’s representatives coming to preview your property so they can sell it to their clients. IF THE PRICE IS RIGHT POINT OF INTEREST: If you overprice your property, fewer agents will show your home and you get less traffic which means fewer offers. A Realtor’s job is to know the local market conditions and property values. If your property is over priced, why waste time? Their time is better spent previewing property that is priced realistically. POINT OF INTEREST: Once you lower the price of your home it becomes “Shop Worn” and “Old News”. Top agents don’t show “old” listings. You can’t capture that flurry of initial traffic had you strategically priced your property in the beginning with a fair market price. Now your property will take longer to sell. POINT OF INTEREST: Even if you do successfully sell at an above market price, your buyer has to get a mortgage so you can get paid. In order for you to get paid an appraisal and Comprehensive Price Analysis (CMA) has to support your sales price. If it doesn’t the deal falls apart and you start all over again after having your property off the market for “X” amount of time. You can always attempt to renegotiate the price, but only if the buyer is willing to listen. The last thing you want is to have to put your property back on the market. POINT OF INTEREST: Potential buyers usually ask two questions “What is the price and how long has it been on the market?” Potential buyers wonder why your property is back on the market. They wonder if you are desperate and will start making lower offers when all along you could have positioned yourself in the driver’s seat by commanding a realistic price. Why settle for less? Homes sell faster at fair market value. A competitive price will attract more prospective buyers. |
