It’s a typical concern for all sellers when they are starting the process of selling their home. You want the most amount of money in the shortest time possible. How can you do that when you know a buyer is going to try to negotiate the price down to get a bargain? Your first reaction is to price the home higher because, you believe, you can always come down on the price later.
Although that sounds like a sensible thing to do, you need to understand how a house is marketed, and what agents and buyers are thinking.
Most sellers believe that a Realtor’s job, when listing a property, is to find the buyer for the house. Truthfully, a listing agent is a “marketing agent”, and if they are doing their job honestly (and not keeping your house a secret so they can find their own buyer and make all of the commission), they will be marketing your property not only to the buyers, but to all the other Realtors in the direct and surrounding areas. You see, 9 times out of 10, it’s another Realtor who has a buyer that is perfect for your house.
Real Estate Agents know the market that they work in, and know what properties should be priced at. When your listing goes out to the masses, and is overpriced, the Realtors in the market are going to put your house on the back burner because they know that it will never sell for that price and it will be difficult to find a buyer willing to pay that price. So, your house sits on the market and doesn’t get the showings that are needed to expose it the most amount of buyers to the house. Also, buyers are very savvy these days, and since market information is readily available on the internet, they too will know that the house is overpriced and will not even consider it. Or, they make take a “wait and see” attitude, watching to see when you do start to lower your price.
The first few weeks of your listing is the most crucial when setting the stage for a sale. A property that is priced right, combined with a listing agent that that has the tools to get it out in front of as many agents and buyers as possible, will have the greatest chance of selling in the shortest time. The longer a house sits on the market, the lower the chance will be of selling.
You need to also consider that once you start discounting the price, the buyers start discounting the house and looking for problems, or feeling that you are desperate. This puts you into a bad position when it comes to negotiating a deal on the home.
If you are serious about selling your home, and want your listing agent to have the best chance possible to get it sold for you, then you need to price your home at or below market value – the first time!