A couple of weeks ago I wrote and published a Post about proper pricing of your home. I wanted to simply post a follow up to that recent post.There are 3 main factors in the sale of your home...... Pricing, Location and Condition! Last time I checked, there was nothing we could do about the location! Unfortunately you cannot pick up your home and move it to a new location. If we could do that, I might be out of a job! Condition can be worked on, to an extent of course depending on budget and again - location. It would not be wise to put a lot of money in to your home, that you may not ever get a return on. Then there is the price. THIS we do have some control over. So, DANGER? why would there be any danger lurking in the pricing of a home? Simple. Let me Explain!
Overpricing Risks
Attracting the wrong buyers! Buyers looking at your home, that may be overpriced are expecting more amenities in the home, based on the higher price. Once they see it, it will not compare to other homes with more upgrades or amenities in that higher price range.
Reduced Agent Activity! REALTORS and real estate agents do not get paid for showing homes. They know is is over priced and will not take the time to show it ad it may be a waste of their time because the seller is unrealistic in their pricing. The agent showing the home is a "buyers agent" and has a responsibility to the buyer and finding the best home and value for their client.
Loss of interested buyers! Not all buyers are willing to go through the efforts to write up an offer, especially if they feel the seller will not consider their offer and what the buyer feels it is worth. So while a buyer may have looked at your home and loved it, if they feel it was over priced they may not submit an offer and risk having it turned down.
Eliminates offers! Basically for the same reasons, it is priced like a higher end home and the wrong buyers are looking at the home.
You help sell the Competition! Yes it is true. If your home is on the market along with others in your neighborhood and yours is priced the highest or over priced, they BOUNCE right off of yours and in to and on to the next. Especially if the home is comparable. Would you pay more for something when you can go down the street and pay less for it?
Appraisal Issues! Been there, done that. Appraisal issues are rarely overcome. Let's say you find a buyer willing to pay your price! Great!! Are they paying cash? Probably not. If you have a buyer securing a mortgage to purchase your home, the buyers mortgage company will order an appraisal, and of course the home must appraise for what it sells for. An appraiser is going to look at recently SOLD comparable homes in the same neighborhood. They will not lend more than the home is worth! That appraiser will look at factual, objective data to come to a determination on the home's appraised value.
Market time is pro longed. No one wants that. Not you the seller, or us as your agent. If your home does not sell, we do not get paid, and YOU cannot move on to your next home. This can leave everyone feeling frustrated.
I have heard sellers say before, All you agents are alike, you just want to get a price reduction, if you did your job my home would be sold. As you can see, this may not be the case. Agents suggest a price point to begin marketing your home for sale, and they recommend that price for a reason. It is based on facts, and information gathered to put you in the best position to get your home sold in the shortest amount of time, with the least amount of stress and for the most money the market will allow! Don't forget we only get paid if your home sells, and the more it sells for, the more we get paid! We would love it to sell for more too, keep in mind, we WANT it to sell. The better priced your home is, the more buyers you will have through and the better your chances are for a quick sale.
Are you ready to discuss the value of your home? Let's Talk. We would love to help you sell your home in Delaware county, or South Philly!
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