Unfortunately, especially in a slow market, sellers will tend to ask higher prices for their homes, expecting to get lower offers - or want to build in a "cushion" into their asking price so they have room to lower the price if it becomes necessary. This is truly a mistake and very rarely works to the seller's advantage. Here's a good example. Two similar properties in the same neighborhood listed for sale within several months of each other - both homes should have been priced at $700,000 or slightly lower. One seller listed at $700,000 and the home was sold very quickly at full price. The second seller decided to list the house at $739,000 - the house sat with no offers, the price was reduced to $725,000, still no offers and still sat - when the price was reduced to $700,000 (where it should have been in the first place) the house had already been on the market for several months, with several price reductions, and sold for $675,000!
In essence, a home that is listed higher than comparable properties will just help to sell the other homes!
Here are the facts:
A buyer who is seriously looking will soon become very knowledgeable in his or her price range. An unreasonable asking price only discourages the buyer from looking at and considering your property.
Buyers purchase by comparison and a property that is priced above the competition does not compare favorably. Inviting a buyer to make an offer can indicate that a fair price has not been established and the seller is willing to take a lower price.
It is very difficult to obtain a reasonable offer on an overpriced property. The buyer feels he/she should be just as unreasonable as the seller, and so a very low offer, if any, will be written.
Serious buyers look in the price range determined by their down payment and monthly payment ability. Unless your property is priced correctly, the down payment and monthly payment requirements will not be competitive.
If you plan to adjust your price at the time of sale, it is better to adjust the price now and attract serious buyers from the beginning. This often places you in the favorable position of having more than one buyer interested in your property.
By contrast, reasonable offers are much easier to obtain on a reasonably priced property.
It is a mistake to believe that you will get more for a property by asking more. You usually get less because fewer buyers will consider it when it is placed on the market. The right buyers will not see it. The property usually stays on the market so long that it tends to become shopworn.
To obtain proper market exposure, it is an absolute necessity to be competitive in price, terms, and condition with similar properties so yours will sell faster.
You will also have greater peace of mind and less frustration with selling your property.
Price it RIGHT the first time and you can get on with your life!
Anyhow, that's all the time I have right now, I will be happy to address questions, comments, experiences - just leave a comment!
As Always BE PREPARED and CHECK BACK HERE OFTEN
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