There is one factor that every Homeowner can control about their property and that is price. One of the hardest facts we deal with is that what you need out of a property has nothing to do with the value of the property. So many times we see Sellers, who overprice their property, rationalize it by saying someone can always make them an offer or you can always go down, but you can’t go up. Actually, they are wrong in both cases. Many times a Buyer will not even go in to see a home that is grossly overpriced, so there goes the make me an offer theory. Other times market conditions or additional improvements will cause the price of a house to be raised. So don’t fall for those old lines.
The other problem overpricing presents is a little harder to demonstrate, but I’ll take a crack at it. One of the most critical times in the marketing of a property is that first four to five weeks when it is new on the market. Should the property be overpriced during this time, people will not feel a sense of urgency about making an offer. Even worse, it will generally take a larger decrease in the price than would have otherwise been necessary to get buyers interested again in the property. For instance, a home is listed for $215,000.00 when it should bring $185,000.00 on the open market. Three (3) months go by and the property has become “shop-worn” and will have to be reduced several times before a buyer will become interested. First $194,900.00 then, $189,900.00 then, $184,900.00 and then $179,900.00 and you see what I mean.
As a home Seller, pay attention to price. It is a very important part of any marketing plan. Please understand, we do not advocate listing properties under market value just to get them sold. On the contrary we believe everyone should get a good, fair price for their real estate whether they are buying or selling.
For competent and professional advice give us a call. Remember until we get it sold, we don’t make a dime.
Steve M. Solomon, V
President & CEO