The Asking Price Roulette... How It Starts... Where It Ends...

Coming to and setting the right asking price for your home is in today's market one of the most important aspects of selling your home. If your home is priced above market value, you very much run the risk of it sitting on the market for a long time.

An overpriced property/home:

• Minimizes the number of offers right from the onset
• Limits the number of qualified buyers willing to look at it
• Reduces the number of showings it will receive
• Will attract buyers in a higher price range that have also higher expectations
• Helps only to sell similar but well priced properties in your neighborhood
• Will most likely not appraise
• Will require price reductions eventually
• Could delay your move to your new/next home (added to list as per Eric)

Today almost all buyers are very much educated and informed regarding the home buying process and price levels in your neighborhood... and have done their homework before purchasing a home, especially if they are working with a buyers agent. They will know if your home is overpriced compared to others nearby.

In selecting a good asking price for your home only your immediate market area is the most accurate indicator. The condition of the current local market, the number of buyers, and current local competition will dictate your home's value. If your home does not meet the competition's price it simply will not sell.

Please understand and keep in mind that the value of your property is not dictated by what you've invested in the property, what you paid for the property, or by the amount you feel you need to receive from the sale of your property.

Choosing the right asking price for your home will always increase advertising response, stimulate buyer interest and compensate for property shortfalls. And if you price it aggressively you may even receive multiple offers which could drive the sale price of your home above the asking price.

However, in the end it will have to appraise at or above the agreed on price when you are planning to finance the purchase through a lender... and if it does not appraise you'll have to expect your buyer coming back to you with a request for a price reduction anyhow.

 

Phyllis Lerner, Realtor

Broker / Owner

http://westchester-real-estate.us
914-438-7556

Voted 2010/2011 FIVE STAR Real Estate Agent by Westchester Magazine

(Disclaimer: Any and all grammar, punctuation and spelling mistakes located within my blogs and other content are purely for your amusement and entertainment.)