As a seller, it's natural to want to get the highest possible price for your home. However, overpricing your home can lead to negative consequences. Agents who overprice a listing are not only misleading the seller but also missing out on potential buyers in the market price range. Buyers have access to market data just as brokers do and are well-informed, so pricing your home above the market value will only deter them from showing interest in viewing it. And the key to getting your home sold is volume. We want to attract the buyers to the home not deter them.
It is crucial for agents to provide accurate market data, and for homeowners to be realistic. On the other hand, agents who do their due diligence and provide a price range that falls within the scope of the current market are helping homeowners obtain their desired goals and do so in their preferred timeline.
The key to selling a property is to price it accordingly to attract the pool of buyers looking for that specific property. Overpricing a property will cause potential buyers to miss out on viewing the home altogether. Therefore, it is important for real estate agents to provide accurate market data to their clients to ensure a successful sale.
By pricing it correctly, you'll attract the qualified, serious buyers, many times for above asking price.
Pricing it right also creates a frenzy in the market-place for your specific property leading to multiple competing and aggressive asking to over-asking offers. Don't let overpricing your home be a mistake that could cost you in the long run. You don’t want to chase the market, you want to get ahead of it.
Homes that sit on the market for a long time are often perceived to have something wrong with them, making buyers more likely to present low ball offers.
Additionally, overpriced homes typically require several price reductions, giving the impression that the seller is indecisive and not serious about selling, which weakens their negotiating position.
Furthermore, holding onto a property for an extended period of time can result in additional costs such as taxes, maintenance, utilities and other holding costs which eat into potential profits. It is important for sellers to price their homes appropriately to avoid these pitfalls and ensure a successful sale.
My advice to homeowners, don't choose your agent based on who gave you the highest price or the lowest commission rate, or both! If you're serious about selling, and don't want people entering your home for the next six months to a year, if you don't want low ball offers or a lack of showings, if you want to obtain the highest price the market will provide, and if you don't want to join the majority of homes that "expire," or are "withdrawn," choose your agents wisely and price your home correctly. This does not mean under-pricing or giving it away. It means, beating out your competition, and ultimately getting more that you would have possible obtained.
I am always available to meet with you to discuss your real estate needs, your desired goals and help you navigate a very important transition.
