1. It is human nature…we are comparison shoppers. Buyers will compare homes and recognize overpricing immediately and this can create some very slow response times to any advertising that is being done for the property.
2. Attracting the wrong crowd….Some potential buyers may be initially attracted because they are looking for a home that is the same price as yours…..with MORE features.
3. Just bring me an offer, you say! Home buyers will usually hesitate on making an offer on an “overpriced” home because, they know that even if you accept their lower offer they are not getting a bargain considering the final sales price is no less than the “fair market value”.
4. Bad example…Buyers that have seen your home and compared it to the others in the area will use your home to make favorable decisions on other homes that are priced fairly.
5. Got a buyer? So maybe you and your realtor can find a buyer who is willing to pay the price. If that buyer is planning on getting a mortgage the whole deal could fall apart due to a low appraisal. A low appraisal indicates the home does not meet the value of the price being offered and you could be renegotiating or starting completely over.
Simply put, overpricing your home=extra time and money on your part, not the buyers. To avoid all of these pricing pitfalls, work with an experienced Realtor in your area. Rely on their research and advice, and together you will be able to price your home just right.
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