Don’t make a mistake of pricing your home too high!
Yes, I said it. Please don’t hate me. A lot of my clients do not want to admit that they have their property priced too high.
I agree with them that their house is definitely worth their asking price, but you have to consider that we’re in a buyer’s market with today’s economy, and there’s not a whole lot that you or I can do about it.
A young couple had hired a Realtor who listed their home for $250k. This price was about $10K higher than what the houses in that neighborhood were selling for, but because the Realtor thought their house would sell for an additional $10k, the couple listened to him.
The house sat on the market for 6 months with a few inquiries, but nothing serious. A year went by and the house was STILL on the market! The young couple eventually decided they needed a change of Realtor. The new Realtor did drop the price, but only by $5,000. So the young couple's house was still being listed $5,000 above what other similar houses to theirs in the area were selling for.
A year and a half later, the couple and the Realtor, both very exhausted and weary, listed the house at $210,000, and someone paid CASH for it almost instantly. The market had softened while the year and a half went by and people weren't paying the houses real worth any more. The sad part about this is that if the Realtor had just set the correct price in the first place, the house would probably have sold just as fast and for $30,000 more!
In most cases, listing a house above market value will almost end badly for the seller. It's much better to actually start LOWER because this catches buyers' attention. Once the attention has been caught, you will get more than one buyer interested, and they will most likely end up in a "bidding war".
As buyers keep making offers they may actually drive the price up to HIGHER than market value and then you can accept the highest offer!
Wherever there is a market, you can find customers. Slightly lower the price of your home, create a market, get people interested, and then sell for the price you want!
If you need a free consultation covering how to appropriately price your home, shoot me an email or give me a call. I would love to work with you on getting your home sold and sold quickly.