Over many successful years of selling homes, we’ve frequently heard comments from sellers, such as:
- “Another agent said it was worth more.”
- “People always offer less than asking price.”
- “The buyers can always make an offer.”
- “My neighbor was able to get his price.”
- “My house is better than these other homes.”
- “We paid more than that for our home.”
- “We just painted and added new carpet. . . .”
- “I need this much money for our next house.”
Although some of these comments may be true, they are not necessarily valid when it comes to deciding on the right price.
When selling your home, one of the hardest things can be deciding on the price. We are truly dedicated to gaining you the most money you can receive from that sale. In addition, we recognize there are many reasons why you already have a certain price in mind.
You may be considering …
YOUR ORIGINAL PURCHASE PRICE
Chances are you paid market value. But markets change, and today we have to deal with the current market conditions which may have changed significantly.
IMPROVEMENTS
Improvements should be made for enjoyment, not 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. Likewise, maintenance preserves the value, but does not create value. If you needed a new roof, it was needed as a maintenance requirement and cannot be added to the market price of your home.
YOUR NEED FOR MONEY
Your need for money or the fact that you are moving to a more expensive area where you will have to pay more for a home has nothing to do with your home’s current market value.
THE COST TO REBUILD IT TODAY
Your home was built at yesterday’s prices and if the buyers want to pay for today’s price they’ll build their own and personalize it for themselves.
Let me share with you what overpricing can do to the eventual sale price you receive for your home…
You will lose excitement that a new listing generates. Realtors are working with buyers who have seen what is currently on the market and are waiting for something new to be listed. Therefore, the most activity will take place in the first thirty days of a listing. Your home will probably receive its highest and best offers during this time. After that initial period, the only people who come to look at your home will be new buyers in the marketplace.
You will lose the most qualified prospects! Buyers will not just “make an offer” because they probably will never see your property. They will view the properties that are priced within their purchasing power, knowing that they cannot afford anything above their price range.
Overpricing helps sell other, more competitively priced homes first. Your home may be used to demonstrate the good value of other properties. Your objective should be to enter the market in a position that will attract prospects, not drive them away.
Your home may become stale on the market. Prospects may wonder why it has been on the market so long or if something is wrong with the property, even after you lower the price. You may even have to settle for less than market value. A house takes on a reputation surprisingly fast, so don’t wear out your welcome on the market.
You lose a strong negotiating position when your house is on the market a long time, both financially and mentally. Prospects will not “rush” to make an offer on an overpriced property, and you may feel compelled to accept less when they finally do.
If you do get an offer, the contract may fall through because of appraisal problems. The lender must justify the price to the market.
As you can see, pricing your home correctly will make a tremendous difference in how fast it sells and for how much. I make it my business to know the market and price my client’s homes to sell for the most money in the least amount of time— and I’m good at it. Just ask my past clients. If we need to talk about price, I’ll call you—or don’t hesitate to call me first.
Let’s work together to make this sale as painless and profitable as we can.