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Overpriced Homes-Sell Slower and For Less

Reblogger Rich Juliano
Real Estate Broker/Owner with Virginia Realty Partners, LLC.

I firmly believe in the strategy described in the blog below.  

Overpriced Homes-Sell Slower and For Less If there’s anything we can take away from the plethora of Bank Owned Foreclosures is they certainly know how to price a home to move!

I maintain that you almost always shoot yourself in the foot by overpricing your home. Your home will almost overpriced homesalways sale at or above market value by pricing at or below market value.

So why is that? Well think back at when YOU were buying a home. Remember when a “great deal” came on the market and everybody and their agents were “swarming” to the open house? You placed your offer only to find out their were 10 other offers and they were going above the asking price? This “bargain price” created an auction affect and got people excited. THAT is how banks are pricing their homes and if you want your home to move quickly and for the most amount of money, this is a winning strategy.

So why don’t sellers do it? I think it’s because there’s a little voice inside of our head (and pocketbook) that says “what if”.

“What if”- I can get $50K over market value. (even if someone were excited enough about your home to pay $50K over appraised value, their lender won’t loan the money if the value isn’t there. No loan, no buyer)

“What if”- I don’t get multiple offers and I only get one offer (May be still overpriced!)

Often fear (and greed) hold us back from making smart choices! Don’t feel bad though, even Real Estate Agents are guilty of senselessly overpricing their homes. Somehow when it’s our turn to sell all of our “market knowledge” becomes goo and leaks out of our ears! It’s like the hairdresser with bad hair!

The bottom line is, almost always, an Over Priced House will sit on the market longer and sell for less than it should have had it been priced strategically from the beginning.

 

Copyright © 2010 By Stephen Munson,Munson RealtyPasadena|Overpriced Homes-Sell Slower and For Less*overpriced homes,overpriced house

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Rich Juliano

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Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

One way I try and use is to explain to the sellers that even IF we could find a buyer for a price above what the home is truly worth, the appraiser would not be able to find three similar homes that have sold in the area... to use on his appraisal.  Once that comes home to them, they are much more likely to listen to reason.

Aug 07, 2010 02:36 AM
Mary Ann Daniell Realtor
Coldwell Banker United, Realtors - Subsidiary of NRT LLC - Killeen, TX
Delivering Successful Results Since 1999

I'm finding sellers are becoming more reasonable and even say "I don't want to overprice".  BUT, there is always the seller out there who will not listen to what the market is saying, even when you show the statistics to them and insist on a higher price.   An overpriced homee NEVER EVER sells for the pie in the sky price the seller wants.   End of story.

Aug 07, 2010 02:53 AM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Yes, it's a seller's market right now in 2017. However, the market will teach some irrationally exuberant sellers that they can't get whatever price they conjure up.

Nov 26, 2017 03:55 PM