One of the most important decisions you will make when you sell your home is choosing the list price. Most of us love our homes, and we take a lot of pride in the investments we have made, such as landscaping, additions, decorating, and remodeling. However, overpricing can be dangerous. How?
- Minimizes offers: An overpriced house discourages prospective buyers from making an offer, since the difference between the asking price and the market price is substantial.
- Declining salesperson enthusiasm and response: Salespeople lose interest in a property that is overpriced. They do not spend as much time showing your house as they would if it was priced right.
- Less qualified buyer response. Overpriced homes fail to attract qualified buyers, or can attract "wrong" buyers.
- Decline in showings: Salespeople avoid showing overpriced houses in order to not lose credibility with buyers.
- Loses prospects from signs: Prospects who learn about the house from the sign get turned off if it is overpriced.
- Limits financing: Financial institutions and mortgage companies finance only a portion of the real value of the house. If the house is overpriced, they will usually finance a lower percentage, thus reducing the available financing options.
- Less for seller: Eventually market interest in the overpriced property completely declines. When this happens, the sellers become desparate, and will entertain offers at any price. Meanwhile, they must bear the maintenance and holding costs. The net result is that the sellers get much less than what they could have, if the house had been priced right!
One of the marks of a skilled real estate professional is the ability to price your home correctly. With more than 30 years of experience, I can help you find the right price for your house. Between January and June of 2013, my list price to sale price ratio was
98% -- over 10 points above the MLS average. Give me a call (610-687-2900, ext 113) and we can talk about the right price for your house.
No comments:
Post a Comment