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Reasons for Overpricing
Improvements should be made for enjoyment, not just resale. You cannot add an item to a home, select it to your style, use it and then expect a buyer to pay the original cost.
An owner’s need for money does not increase the value of the home.
Values are location specific. High values in the destination do not increase the value of the existing home.
Chances are you paid market value. It’s not a price that was too high, but a market that has experienced subsequent change.
Base your opinion of value on recent documented sale prices.
Buyers may offer to low, but they will do that at ANY price. It is easier to negotiate up to fair market value than to inflated price.
Even if the move isn’t urgent, it is important to price correctly to preserve your marketing opportunities when the move becomes urgent.
Third party companies purchase thousands of homes a year so the offer you receive is usually market value. Market your home very close to that price.
Benefits to Proper Pricing
When your home sell faster, you save carrying cost, mortgage payments and other ownership costs.
If you’ve moved before you know the energy it takes to prepare for showing, keep the home clean, make child care arrangements and alter your lifestyle. Proper pricing reduces this.
At market value, you open your home up to more people who can afford the price.
When salespeople are excited about a home and it’s price, they make special efforts to contact all their potential buyers.
Ad calls and sign calls to REALTORS turn into showings when price is not a deterrent.
When a home is priced right, buyers are less likely to offer low out of fear of losing a good home.
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