SELLERS GUIDE TO OVER PRICING A HOUSE
The over pricing of a home may not be detrimental in a hot real estate market but when things cool off, it could lead to a stale dated listing but most importantly over pricing will drive interested buyers in the direction of other competing market listed homes within a certain price range. Usually overpriced homes listed on the market will have a Days on Market (DOM) larger than the average comparable listing.
FROM A POTENTIAL BUYER’S PERSPECTIVE AN OFFER MAY NOT BE PUT FORWARD FOR THE FOLLOWING REASONS:
- They do not want to insult the buyer and perhaps feel there is a stigma attached
- They are finding better value elsewhere and do not want to pay for an overpriced home
- In a hot market, some potential buyers do not want to be part of a multiple offer situation
If an overpriced home is marketed by having an Open House, the feedback from other real estate agents and potential buyers will conclusively reveal that the home is overpriced. Eventually it will be up to the seller to either continue marketing this stale dated listing and wait for a potential buyer or reduce the price to try to spur on demand.
FROM A SELLERS STANDPOINT, CAREFUL CONSIDERATION MUST BE MADE BETWEEN THE FOLLOWING VARIABLES:
- The amount that the home will be listed for on the market
- The number of homes and listed value of all comparable homes on the market
- The direction of the residential real estate market in your area (buyers versus sellers market)
- Your motivation for listing the property for sale (ie: Testing the market or Need To Move Soon)
The most important consideration if and when a potential buyer is presented is that upon buyer qualification it is revealed that the appraised value of the home is less than the listed value and therefore financing will not take place.
Contact me for a free market value consultation to discuss the selling of your house but also my unique ten step marketing plan that will ensure Maximum exposure of your house . I am a Certified Negotiation Expert (CNE®) after having earned this Designation through The Real Estate Negotiation Institute.