When your realtor prepares to sell your home, that person will look at what homes have been selling for in the area immediately surrounding your home. What homes are selling for is what sets the Market Value - or what you can expect to get for your home. Prices have come down in Hoover Alabama, just like they have in the rest of the country, so it is unrealistic to expect to get the same amount of money your neighbor down the street got two years ago.
I like to say, you need three things to sell a house: great condition, great marketing and the right price. I have given all kinds of helpful "condition" hints in the past, but let's talk about PRICE.
The first three weeks on the market are the most critical when selling a house. So, it is important to resist the temptation to price it higher and then come down later.
Here's the thing, especially in today's current housing market where numerous sellers are competing for fewer buyers (there may be over a hundred properties that meet a buyer's general requirements), your house has to be in the top 10% to get noticed. No one - well almost no one - wants to look at 100 houses. Buyers look at homes on the internet and pick out their favorites. If the seller's home is grouped with others that have more "WOW", the buyer will just skip over it. Also, the majority of buyers use buyers' agents to assist them with purchasing a property. Buyers' agents will help the buyers find a home that's right for them. If their buyers are interested in a particular home and it is priced too high (based on comparable properties sold) then the buyers' agents will find their clients similar more reasonably priced homes to view in the same area.
As a seller's property that's over-priced continues to sit on the market the listing loses its newness. There are typically fewer new listings than existing listings. Agents pay a great deal of attention to what's new on the market. Homes that are priced correctly generate attention, activity and a sale; over-priced homes, on the other hand, sit for long periods, are passed over, and ultimately result in a price reduction.
If a seller has an over-priced home on the market and then finally lowers the price it sometimes goes overlooked. Because it's not a new listing it'll need a lot more attention to get agents and buyers to notice that this same home is now being offered for less.
There are things the realtor can do to try to get the home back in front of people - to COME SEE IT NOW - Emails, Flyers, ads, etc.. Not an impossible battle, but again, the listing is no longer new and may be less appealing even with the price reduction.
When the seller lowers the price, it may come too late and if the market is falling, the seller is still above its competition even though they lowered the price.
Most sellers who start too high, end up getting less in the end than they would have if they priced lower to begin with. If you'd like to know what houses have sold for in YOUR area, let me know at Toni@ToniBird.com. Reviewing information on SOLD properties will help see what the selling price of YOUR home should be.