Many sellers make a make a critical mistake by over pricing their home. Please remember, buyers will not purchase your home because of what you want or need, they will purchase it for market value, at that given time. The market value determines what your home is worth and you need to price it accordingly.
To make my point, would you sell your home for $50,000 less than the market value because a buyer liked it, and doesn’t want to move to a less desirable area? Probably not. But guess what, it works both ways, they aren’t going to pay you an extra $50,000 because of your wants or needs.
Buyers make decisions based on value and what has recently sold. Whether it’s a buyer or sellers market, it’s very important to price your home correctly from day one. If not, you wont receive any offers and your home will just sit there and become a stale listing. At that point you will either have to do one of two things, reduce the price significantly or take it off the market.
I’d like to share a real scenario between a buyer and their agent. Each week, agents go on Broker’s Tour to see the new inventory available. After touring the homes, agents call their buyers with an update. When the buyer asks if they saw anything that might be a match for them, the agent says ” I saw a nice home, but it’s overpriced,” would you like to see it? The buyer almost always says no, not if it’s over priced.
If they say yes and decide to make an offer, they will offer way less because their agent told them it was too much in the first place.
Now, if they didn’t look at it. After weeks or months, your listing is stale and agents forget about it. It’s out of sight and out of mind.
At that time, the buyer asks the agent whatever happened to that home over on …. the agent says it was over priced and it didn’t sell. The buyers says let’s take a look at it. Believe me, If they like it they will make an offer for WAY BELOW what you were asking. Why, because if no one else was willing to pay your price, why would they. You can’t expect them to outbid themselves.
Sellers, when it comes time to list your home, hire an experienced agent who knows the area well, the value of your home, has the best marketing plan, and most importantly possesses the skills to make certain the possible price and terms can be negotiated for your property.
What separates a good agent from a TOP agent is their knowledge and skills. Hire the person that you believe will do the best job for you and not the one who makes promises with no clear plan on how they will be delivered.