Happy New Year to you and I hope everyone is settling back in to their routines. Last time we talked about how easy it can be to buy a home, so now let’s talk a little bit about selling one.
The national news would have us all think that the Real Estate market has come to a screeching halt… that simply isn’t true here in our area. Slowed some? Home prices declined a bit? Yes, that is true. However, people are still selling. Re-location, divorce, Marriage/combining households and the best reason in this market to sell in my opinion is to take advantage of the home prices and low mortgage rates to upgrade.
So the fact is that there is some fantastic inventory out there. So why do some homes sell quickly and others do not? Well there two reasons… Condition and Price.
Let us discuss all the dangers of overpricing in this market. Assuming condition is average to average plus.
1. MINIMIZES OFFERS
An overpriced house discourages prospective buyers from making offers since the difference between the asking price and market price becomes substantial.
2. DECLINING AGENT ENTHUSIASM AND RESPONSE
Agents lose interest in property that is overpriced. They do not spend as much time showing the house as they would if it were priced right.
3. LESS QUALIFIED BUYER EXPOSURE
Overpriced houses fail to attract qualified buyers, or attract “wrong” buyers.
4. DECLINE IN SHOWINGS
Agents avoid showing overpriced houses in order not to lose credibility with buyers.
5. LOSES PROSPECTS FROM SIGNS
Prospects who learn about the house from the sign get turned off if it is overpriced. They do not pursue the matter to even see the house.
6. LIMITING FINANCING
Financial institutions and mortgage companies finance only a percentage of the real value of the house. If the house is overpriced, they usually will finance a lower percentage, thus reducing the available financing.
7. WASTE OF ADVERTISING DOLLARS
A house that is unrealistically priced fails to get normal advertising response. This reduces the effectiveness of advertising and results in the loss of advertising dollars.
8. LESS FOR SELLER
Eventually market interest in the overpriced property completely declines. As this stage is reached, the seller becomes desperate and he begins to feel he would sell at any price. In the meantime, he or she must bear maintenance and holding costs. The net result is that the seller gets much less than he could have if the house was correctly priced in the first place.
So as a potential Seller, I am certain much of this makes great sense to you. Making sense isn’t really the problem though is it? It is accepting it, that is the challenge. So let me offer you the benefits of competitive pricing.
You immediately benefit by more activity and showings because of increased agent and buyer enthusiasm. Both salespeople and buyers are excited by a competitively priced house. Salespeople like to talk about and show these houses with interest. Buyers consider them a good deal. The biggest benefit though is that homes that are priced right from the get go sell quicker and for more money. Yep, you read that right! When a buyer and agent already believe the home is priced accurately and competitively the offers tend to come in at a much higher percentage of list price than if it is perceived to be overpriced. At Keller Williams we believe in a win-win philosophy. It results in a smoother transaction, more money for the seller and the buyer still gets the value they were looking for. The reality is that people do not put their home on the market in this type of environment unless they want to or need to sell. Pricing your home competitively is the quickest and smoothest way to get it done!
For more information about me or if you want to find out what your home is worth please visit my website at www.joymariehomes.com or email me at firstname.lastname@example.org.
Have a great week!