Overpriced Properties Will Linger On The Market

By
Real Estate Agent with Canadian Real Estate Online

The usual mistake that triggers many properties to sit on the market is that misconception that if it does not sell for the asking price immediately, you can attract buyers later by lowering the price. As a general rule, a well priced home will get a lot more initial attention from prospective buyers, and you incur the risk of buyers never making it to your property if they locate a better deal. You may also suddenly find yourself facing time and financial obligations that force you to have to drop the price dramatically.

 

The appeal to over-price a home with the intent to will sell high is really only feasible in a booming real estate market, but it can still be a precarious method since there can be a downtown in the market before you sell. Since the initial 30 days on the market generates the most attention for a home, having it sit for three to six months because of over-pricing can put your house in the "stale" basket which many buyers and Realtors often ignore. Even in sectors with rising available homes and stable values, just getting viewings for an over-priced property can still be difficult.

 

To establish the correct asking price for your home, consult with professional real estate agents and look at classified ads to get an idea of the baseline price for properties in your area. Although you can read lots of general property reports on the internet regarding Brampton property only an expert agent will understand community particulars. Find out the "average days on the market" by looking at multiple listings, paying attention to what price houses start to lose their steam on the market. You should know that quotes from real estate agents might be high since their fees are based on the sale price and they could be taking a gamble that your property may move rapidly.

 

If your home has not generated multiple showings the first month it is listed, you probably have priced above its value. Local Realtors are hesitant to spend their time showing clients a home they cannot buy. It is best to lower the price quickly rather than holding out for for a potential "lucky break" since potentially lucrative offers may slip through your hands. This is particularly true with downtown Toronto condos since competition is often fierce and you could be competing with the builder.

 

Another factor which needs to be reviewed is low-priced homes availability on the market from mortgage defaults and unpaid property taxes that provide unfair competition to other available homes. Many of these properties are in financial troubles because the seller stuck to an unrealistic price and where unable to move their property. You should remember that bargain shoppers are also attracted to "fixer-uppers" that can impact the total area's average so that over-priced homes have less interest. In areas like real estate in Barrie you should think that purchasers might be looking for cheaper properties so overpricing a property could be a disaster.

 

In fact, numerous real estate agents note that a bidding war is much easier to start of low-priced a property than one with an inflated asking price. They have dealt with buyers reluctant to offer under the the listed price, but eager to make counter-offers on low-priced properties that have appealed to multiple purchasers. Buyers like to feel like they are receiving a bargain, and real estate agents realize that homes that hit the market with low-price points generate more action than houses who have to lower their price as a consequence of sitting for a number of months.

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