Lender Processing Services, Inc. Applied Analytics division came out with the HPI (home price index), showing that we seen a significant jump this Spring from prior years. You can read about it in DSNews.com, LPS: Home Price Index Increasing at the Fastest Rate Since 2005.
Is that so? Just because inventory is low doesn't necessary mean the buyer will pay more than reasonable. There has to be something really desireable for someone to want to pay the high price that sellers are wanting for their home. I know we all want to capture some negative equity back but consider the cost of overpricing:
1 - Takes longer to sell. There's got to be something about the house or the location for someone to pay high dollar for that house.
2 - House has to have all the little things fixed up and it better be in tip top condition or the buyers will be very picky. I'd suggest hiring a home inspector and getting all the little repairs done that needs to be repaired,.
3 - Better not be anything unusual about the house. A cookie cutter house and not with an unusual floor plan or design will appeal to more people in the market, unless it is in a sought after neighborhood and the house isn't the issue, the location is.
4. Be ready to pay sales concessions. The buyer is going to want something in return for paying top dollar for your house.
5. There won't be as many showings because the price a lot of times is what drives the agent as well as the buyer to show your home.
I have very seldom seen buyers make an offer on a home they feel is overpriced unless there is something really compelling about the home or location. Most of the time, they will wait until the price has been readjusted to where it's close to what they want to make as an offer.
For more tips on getting your home ready to sell
John L Scott Real Estate
1700 NW Gilman blvd, suite 300
issaquah, wa 98027
(206) 686-1818 FAX: (206) 686-3308
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