With all the news we hear about the market being a Buyer's Market, sellers have a tendancy to want to price their home high, because they know the buyer is going to make a lower offer. That way, they will have room to negotiate. While this reasoning my be a strategy employed by some markets, it is not true, or even recommended for most areas. Below are eight good reasons to NOT price your home high and wait for the buyer to bring you an offer.
8 Drawbacks to Overpricing Your Home
1. Overpricing reduces activity....Agents will not show your property if they feel it is priced too high.
2. Overpricing lowers the response to advertising. Buyers will not be as excited about your ad as others they percieve as a better value.
3. Overpricing causes a loss of interested buyers. Your home will seem inferior in amenities to others in the same price range that are priced correctly.
4. Overpricing attracts the wrong prospects. Serious buyers will feel they should be getting more for their money when comparing your home to others that are priced correctly.
5.Overpricing helps the competition. Your high priced home makes the others seem like a good deal.
6. Overpricing eliminates offers. Buyers may think that offer what they feel as fair for your home will be an insult to you, the seller, many buyers will move on to another home that is priced correctly.
7. Overpricing causes appraisal problems. Even if you were to get a full priced offer, the appraiser bases their value on what comparable homes have sold for.
8. Overpricing may lower your overall net proceeds. If your home is overpriced, it will eventually end up selling for less than if you had it priced correctly in the first place, not to mention the additional interest you are paying while waiting for the offer.
Remember..... The value of your property is determined by what a ready, williand and able buyer is willing to pay for it, which will be based on other recent closed sales. Buyers determine the value, not the Realtor or appraiser, we just interpret what the market is saying to the seller.
This information is offered by:
Deb Wilson, Realtor
Crye-Leike Realtors
2204 D Madison St
Clarksville TN 37043 USA
931-648-2112
931-206-8551