Nothing can slow down the process of selling your home faster than overpricing. It is the number one reason that houses don’t sell.
COMING DOWN IN PRICE AND THE FIRST 30 DAYS
“We can always come down in price later, right?” is a question that sellers very often ask me. In my experience, the first 30 days see the most buyer traffic. Pricing high then dropping down later could mean that you are missing out on the best, most serious potential buyers.
OTHER AGENTS AND TOO MUCH TIME ON THE MARKET
Many agents won’t show any overpriced listings. When inventory is at a high, agents show homes that are in the potential buyers’ price range which meet current Fair Market Value. When a home is overpriced, it sits on the market. This can work against you and for your competition, meaning potential buyers will see your property as a selling point for other properties. You don’t want buyers to be saying that they can get the same house for less! More time on the market also means that buyers will question whether or not something is wrong with the house. Buyers tend to ask two questions right off the bat: “What’s the price?” and “How long has it been on the market?”
CAUTIOUS LENDERS AND THE FINAL SALE
Lenders today are more cautious than ever. Loans are based off appraisals. Appraisals are based off comparable properties that have been sold. Generally, when a house goes on the market overpriced it ends up selling for less than market value. There are less buyers interested, and you lose some of your leverage because of the length of time the property was on the market.
By TERRI PERLINI,
GLOBAL LUXURY HOME SPECIALIST
COLDWELL BANKER RESIDENTIAL REAL ESTATE
terriperlini.com