Go ahead. Shoot yourself in the foot. The pitfalls of overpricing your home. - reblog
Overpricing a home is a very expensive mistake and actually loses money for the seller in the long run, this is a great post written by a fellow agent in Huntsville, Ala. It is the same everywhere, overpricing costs a seller money and precious time. This article will help sellers to understand this mistake.
The art of pricing your home to sell is SO IMPORTANT. While I understand your thoughts on overpricing your home, I'm here to tell you, you are making a HUGE mistake. Go ahead and load the gun in preparation for shooting yourself in the foot.
The days of putting a price on your home because you "need or want that price" are gone. Buyers are much too savvy. After the recent nationwide meltdown of the Real Estate market, buyers are skittish. Rightly so. A good majority of our buyers here in Huntsville are Engineers and Scientists. They make up approximately 80% of my business. Without our stable Engineers, our Real Estate market could be in the tank with so many other cities. Slow and steady growth has seen us through the tough times. Yes, our market is down a bit, but compare us to other areas and we are doing very well.
I work with buyers and hear what they have to say. With a large inventory of homes for sale in Huntsville, it's easy to understand why a buyer would not want to waste their time making offers. Buying and selling is psychological.
Buyers look at dozens of homes and typically can know the market value better than a seller does. Why? They see them all! By the time my buyers make an offer, they are well educated on our Huntsville Real Estate market, from data I have gathered for them from recent sales and by seeing for themselves. Neighborhood comparables are an indicator of market value. It is nearly impossible to convince today's cost-conscious, consumer-savvy buyers to pay more than the housing market says it is worth. Would you? As a Huntsville Buyers Agent, it is the agents job to ensure buyers have all of the data necessary before making their offer, so they can make an educated decision.
Overpricing your home will not only cause it to linger on the market, but will also raise red flags as to why it hasn't sold, when it has been reduced over time to the correct market price.
Let me walk you through some of their thoughts and how overpricing can and will be the loaded gun.
Buyers Point of View
The sellers must be hard to deal with because their home is so overpriced.
They found a similar home that meets their criteria that is priced at market value. Why fight with an unrealistic seller?
The buyers do not want to offend the sellers.
Afraid of being told "NO" by the seller. They can't risk the rejection, or won't.
Afraid of overpaying. What if the housing market continues to decline?
Something is wrong with this house. Look how long it's been on the market!
Oh yeah! Here is a real desperate seller! Look how long it has been on the market and how many times it has been listed. If they just reduced it that much, they'll take this much! (I can smell blood, so prepare yourself for a LOW offer...below market more than likely!)
Realtors Point of View
I am not interested in showing over priced listings to my clients. I do not want to risk losing credibility by taking my buyers to see an over-priced property. If I DO show a clearly overpriced home, it is usually in an attempt to show them how well THE OTHER home is priced.
From a Realtor's point of view, why do I want to fight with the agent that clearly thinks his listing is priced at market, when the numbers prove otherwise. My buyers have "X" amount of time to buy a home. Collectively, we have no time to waste here. If the transaction begins on a negative note, it can more than likely end on one as well. I'll pass.
Sellers: Do your homework
Price your home correctly. Listen to your agent. Listen to our Real Estate Market in Huntsville Alabama. The longer your home lingers, statistically you will sell it for less. The first 30 days are the most important time when listing your home! If you can't list you home for the price you have in mind in today's market, consider waiting.
By ALL means, avoid shooting yourself in the foot by making sure you are working with a qualified Realtor that will price and market your home to get you top dollar, in a timely fashion! Choosing a Huntsville listing agent is the most important step. A good agent may not always tell you want you want to hear. They will tell you what you need to hear!
Courtesy of Elizabeth Cooper-Golden Huntsville AL Realtor (R)
Broker/Owner @ Homes Realty Group
475 Providence Main Street Suite 302
Huntsville, AL 35806
All rights reserved. No copy writing permitted without written permission.
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