Is over pricing ever a good idea?
A good point to ponder as spring is slowly upon us. When IS overpricing TOO much? All markets are different and what's good for one area may be terrible for another. The key is to NOT let it get out of hannd and come to a mutual price between both you and your seller. You have to keep some control when this comes up.
I have a meeting this afternoon to speak with my next door neighbor about selling their home. They have decided that they want to be closer in town and have decided to make the move. They are feeling a bit pushed because they have found a neighborhood they like and the homes there are selling fast. I spoke to them the other day and told them I had good news, and we discussed briefly the price range they could expect their home to sell in.
Well, they want to sell for more. Who doesn't? They want to price their home about 9% higher than my estimate. I think I will go along with them as prices in the area are starting to rise. What baffles me a bit, is that I have never priced homes in a rising market! In 7 years in the business I have only known falling prices! I think from now on I will add about 5% to my CMA estimates and start there. We have an agent who handles many of the sales in a subdivision nearby and she is raising prices about $5,000 after each home is sold. Is this what "Good times" looks like?
I know over pricing is always a bad idea, but in a rising market, I think pricing just a bit in front of the market might not be so bad. Your thoughts?
I write about daily life as a Realtor in the Towne Lake Community in Woodstock Georgia.
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