If your property has not sold - Read this !!
Having an overpriced property is embarrassing, unprofessional, and unprofitable for the Seller as well as the Realtor who is representing you. When your property is priced right, you feel proud, confident, and relaxed. In fact, instead of worrying about your property selling, you can almost choose whom you will let buy it!
Overpricing Your Property!
For Real Sellers Only!
For Real Sellers Only!
1. No pricing presentation. Did your Real Estate Agent prepare a Competitive Market Analysis, supporting documentation, and pricing illustrations that address all the key objections that would prevent you from overpricing?
2. Fear of confronting you, the Seller. Is your Real Estate Agent afraid to tell you the truth about your property, for fear of you not allowing him/her to represent you?
3. Seller don't believe their Realtor. A Real Estate Agent's position is one of vested interest in having the home sell quickly, so the Seller may not trust his/her pricing. That's why your Agent must base pricing on facts! Were you giving all the facts? If so you would not allow your property to be overpriced!
"One Agent gave you the highest listing price"
It is in the Seller's interest to select the best Agent, not the best price. A Real Estate Agent has no control over the market, only their marketing plan. Never select an Agent based on price. If you hire the agent you like least, but says the highest price, you'd be overpricing your home with the least qualified agent. You should hire the best Agent, not the most agreeable on price!
You the Seller think "We can always come down on our price"
Have you been shown the history of an overpriced home that eventually sold. It goes from overpriced, to market value, and then down to a SOLD price that is under market value.
Here's what happens: A home starts out at a price $$$,$$$ over market. It doesn't sell so you reduce the price. It still doesn't sell so you reduced it again. It still doesn't sell so you reduced it again. And finally you reduce it to market. What do you think happens? (You suppose it sells?) No. It still sits on the market. Do you know why? Because if it's been on the market a long time buyers think they can buy it for under market or something is wrong with it. So it finally sells for $$$,$$$ below market price. What do you think would have happened if it were priced right the very first day?
So now you want to list at the highest price and think "We could try it for a couple of weeks?"
Worst mistake, thinking you can go back in time! You're overpricing your home during the period when your best buyers show up, then lowering it after they're gone. It's like having a dinner party on Saturday and having the caterers come on Monday.
How about this one "But we have so many improvements in it."
Most improvements are made for personal enjoyment! Anything beyond needed renovations/repairs are personal improvements. Heated floors, gold faucets, fancy closets, great! but all for you to enjoy, your way! Another important point is that structures and improvements made do not appreciate in value. (They depreciate every day they are used) It is the real estate, the land that appreciates! Where is it said that you can buy an item, install it in your home, use it for a few years then ask a new buyer to pay you top dollar for it?
Yawn, another good one "But we paid $,$$$,$$$ for it"
What you paid for your home has nothing to do with what it's worth today. If you purchase stocks, you clearly understand this principle :( or :)?
The last mistake you want to say is "They can always make an offer"
The problem is, most buyers look up to their price range. By overpricing, you put your home into a price bracket where they won't look. But buyers who do see your home will be able to afford your higher price, however, they will not be interested in it. What you will be doing is making another Real Estate Agent money! They call a property that is overpriced "A USER" - A User is an overpriced property, that Agents who have the buyers love, Why? They use YOUR property to sell the properly priced homes and the longer you are overpriced the more you are USED! .
Click here if you need to sell TODAY!!