Every seller wants to realize as much money as possible when selling their home. The natural inclination is to price your home high, thinking you can always come down in the future.
But a listing price that is too high can be a disaster, and frequently nets the seller LESS money then they ever anticipated – even after paying a real estate commission!
Why is this?
Because buyers will reject your home in favor of other homes in a reasonable price range. And if that doesn’t frustrate you, think about this: Buyers will use YOUR home to compare and justify the purchase of a similar, but correctly priced home.
But the problem gets worse…
It’s a fact that 96% of all homes are sold by Realtors. So whether you sell your home yourself, or through a professional, you MUST be able to attract the Realtor community to your home.
Problem is, agents who otherwise would readily bring buyers through your home will automatically cross it off their showing schedule because it’s priced too high. They don’t make money showing homes…they make money SELLING them.
They know market values in your area. And if your home is priced too high, they’re not even going to waste their time showing it.
And word spreads with the agent community. If your home gets “branded” as overpriced, not only will agents NOT show it, BUT you’ll have to lower the price further than you ever expected…just to get them back.
Agents Simply Will NOT Show Overpriced Home Because They Work By Commission. Showing Overpriced Homes That Will Never Sell Means They’re Working for FREE
You see, your home is MOST valuable when it’s new on the market. And if you delude yourself into thinking you can price it high and come down later, you’re in for a big surprise.
Here’s what will happen: After months on the market without even a nibble, you or your agent will decide to reduce the price. Even with your price reduction, there’s still little activity because your home’s been “branded” as overpriced.
So after a while longer you decide to lower the price a little more. Now you are pushing the limits on what you wanted to receive in the first place.
Finally, you start to get a nibble or two.
Problem is, your home’s been on the market for months now. And when you finally receive an offer, you can bet you bottom dollar it’s going to be discounted further.
Because buyers usually want to know how long a home has been on the market before they decide how much to offer. And the longer your listing has been sitting unsold, the more desperate your home looks.
Like sharks smelling blood, buyers will see your home as prey.
And their offers are going to knock you over. But you’ll have little choice but to negotiate. You have no other options.
How could this all have been avoided?
By simply pricing your home correctly in the first place.
It’s a known fact: the very same reasons that make a home sell fast will make a home sell for the most money. Homes are best positioned to sell when they’re new on the market.
There’s an old saying in real estate ”Sellers are NOT the deciders of what their home is worth, but they ARE the deciders of how quickly their home will sell.”
The REAL value of your home is what a willing buyer will pay for it, what you will accept and what it will appraise for. Nothing more. Nothing less.