For more about homes and real estate in the Southwest Houston, Richmond, Katy and Sugarland areas, either call me at 832-248 4413 or visit my website at www.har.com/lsampangisurrealtor.
Pricing your house right is an understatement. I cannot emphasize enough how very crucial it is, especially in this market we have today.
In my last job with foreclosed homes, since the properties are owned back by the insurer, pricing the house right has been very objective. The owners based their List Price on the numbers in the Broker Price Opinions' comparables. They were all priced right on the money-what the market actually shows, and boy they sell so quickly! To them there really is no other way, the faster they move these foreclosed homes, the less money they lose.
However, with homeowners, it's quite a different story. Homeowners have an almost basic instinct to hold a sentimental value that equates to a higher dollar value they envision for their home. Unfortunately, emotional attachment, sentimental value or pride of ownership is not quantifiable to anybody else but the homeowners themselves.
I once had a listing appointment with a seller whose expectations were just too high that no amount of quantitative market data could persuade him to price his home at what the market realistically holds it for. We finally came to an agreement to list it for a little over what my Comparative Market Analysis shows & less than what he wants to sell it for which of course he wasn't all too happy about. Long story short, it stayed on the market for about 60 days without an offer though it had a good number of showings. It helped that I asked for feedbacks from Realtors who've shown it and told me it was overpriced. Price was eventually reduced to what it ought to be at first then finally sold in no time!
I spend the most time preparing and studying Broker Price Opinion and Comparative Market Analysis whenever I list a property or offer to purchase one. Sellers who are serious about selling & buyers who are serious about buying would be served well if they look at these tools provided to them by their Realtors & consider them.
Over-pricing leads to:
- Target the wrong buyers as it is placed in the wrong price range. In my scenario above, led to showings without garnering any offer.
- Lost marketing time that may be costly for sellers in some instances when they have to move or sell quickly.
- Property becomes 'stale', gets lost or pushed down inventory.
- Big number showing on Days on the Market (DOM) staves off buyers suspecting that something is wrong with the property. I would actually categorize this as a stigma. Anybody wants something that is fresh!
Let me help you price your home right! You may request for free Comparative Market Analysis via my website, blog or email: firstname.lastname@example.org. Just happy to be of service!