“I understand your disappointment Mr. Jones. Your house did sell for less than you set out for. It actually sold for exactly market value – sadly, that was my recommended list price 4 mortgage payments ago. “
“Zillow’s research finds that homes lingering on the market generally sell for notably less than their list price: five percent less after 60 days. “
The above mentioned 5% loss and also factoring in the loss of two more mortgage payments, are two common, yet painful penalties of overpricing. You may wonder, “What’s the big deal? I’ll drop the price if it hasn’t sold in 30 days.” Actually, your home gets the most interest and showings the first few days on the MLS. So it really is a big deal – overpricing your home is a missed opportunity for making a good first impression.
Be bold, and price your real estate accurately right out of the gates. Buyers have a set price range, and it’s in your best interest to have that pool of interested homebuyers be responsive to your price and make an offer.
Trying to make more money by selling real estate at an inflated price can be like trying to grab a fist-full of water.
Buyers will slip right through your fingertips when they do the math. Then, as days on the market increases, the interest in your home will naturally decrease, as newer homes on the market filter in. Starting to understand my stance on overpricing your home? I spend a lot of time monitoring the Truckee real estate market. Home sellers – you need to do only 2 things:
- 1. List at market value
- 2. Have your home conditioned to sell.
Admittedly, after price reductions, your overpriced home should eventually hit it’s market value and get an offer. Here’s where the real penalty falls.
Your buyer will low-ball you because your home has stagnated.
A stale home gets about as much interest as festering leftovers in the fridge – nobody wants it. You’re at a place of disadvantage when it’s time to negotiate a stale listing.
THE LISTING GAME PLAN:
If you’re listing your home, do it with boldness and finesse. Do it with faith in the comps and certainty in the market value, and avoid the pitfall of overpricing your home. I urge you to remember that buyers will take you seriously if you appear to be serious about selling. So accept your real estate agent’s advice and remember you’re on the same team. Actually, if you cannot trust their home valuation then you should get another opinion. So how should you get started? Here are a couple great articles about getting your home ready to sell, reading them would be a nice first step towards selling your home.
Click below to read a couple helpful articles.
- Tips for Getting your House Ready to Sell
- Who Wants to Sell their Home for More?
- Want to Sell your Home? It’s all about the Marketing
Additionally I’d like to give credit to Zillow for the article where I found the statistic about overpricing your home: see that article here.