DANGER, DANGER: DON'T OVERPRICE YOUR HOME!!

Reblogger Roy Kelley
Real Estate Agent with Realty Group Referrals 16766

Larry Atkins provides some very good advice for home sellers. Those that overprice their homes should anticipate a long list of related problems. Realistic pricing is one of the keys for success for a satisfactory transaction.

 The colors of winter in Maryland. Life is good in Montgomery County!

Original content by Larry Atkins

DANGER, DANGER: DON'T OVERPRICE YOUR HOME!!

Okay, you've decided to sell…but for how much. Yeah, you want to make as much money as possible but beware…don't overprice it could cost you in the long run! How you ask?

Top Problems of Overpricing

  • Limiting prospective buyers – Buyers usually know their price range and most buyers and their agents don't search out of the price range they can afford.

  • Miss out on the big splash – Homes get the most traffic in the first 30 days. So if you price high, planning to drop later you will lose out on the initial demand…and once it's gone…no price reduction will duplicate that new listing potential. 

  • Attracting the wrong buyers –Buyers have some idea the type of house their money will buy. To illustrate this point let me ask you, would you buy Geo Metro for the price of a BMW….well neither will the potential homebuyer. 

  •  Delay, Delay, Delay – By overpricing your house you are wasting your time and money….it may cost you more in mortgage payments to start at a higher price and leave your house on the market for a long period of time….and you may end up selling for less after price reductions. Plus, you may need to move and ultimately be stuck with two payments waiting for that high price. 

  • Mortgage Turn Downs ­– Overpriced houses will not appraise enough for a loan. No loan – No sale. 

  • Raising Suspicions - The longer a house stays on the market the more potential buyers wonder – What is wrong with that house? 

  • Could help sell your competition- Overpricing your house will only make properly priced homes look like more of a deal to most buyers. 

  • Realtors don't show your home - They will know the market and recognize that your house is overpriced. They want to SELL and their buyers want a good price, so they have no motivation to show your home….especially in today's market when there is plenty to show.

Pricing to Sell

Don't start out by stating what you want….you or your realtor do not set the price it is set by one thing ….what a buyer is willing to pay. So, how do you determine what a buyer will pay?

  • Market Research – Before setting a price, you need to know the market. No one knows that better than Realtors. So speak with three realtors before choosing one. DO NOT pick a realtor just because they suggested the highest price. Rather examine the data they used to provide the suggested price….this should be comparable sales pending and expired listings they provide. Comparable sales are the most important because these will show what houses like yours have sold for recently…remember to check and make sure they are comparing houses that are like yours. Once you have inspected the data you should know which Realtors are giving you the most accurate value. There are of course many factors that go into choosing a realtor but the price suggested should not be the only one. Many agents price high just to get the listing but this doesn't sell your home the fastest and may hurt you in the long run.

  • Remain Objective - Buyers do not have the memories and time vested in your home. Plus, they see the scuff marks, overcrowded closets, stains on the walls and ceiling that you don't notice anymore. Price on what's there not on what you feel. 

  • Visit other houses – Visit other houses on the market. Compare what your house has to each of them and price accordingly. Also, this may give you tips on what to do or not to do when preparing your house for showings.

So, in a nut shell don't sell for what you want, what someone tells you or what your neighbor is asking for their house…..do the research and price for the market. If you notice there is little to no interest, be flexible in dropping the price. Pricing a home is not an exact science, only you can determine the price….after all only you can know what you owe on your mortgage and you know your house better than anyone…so have experts help with the research and then come up with a price that both you and a buyer can live with.


Feel free to share more tips on how to price a house to sell.

If you're interested in buying Real Estate in South Central Virginia you can visit our main website or Subscribe to our Email List and choose from listing and local marketing reports.

If you're considering selling your property, we would love to show you how our extensive internet marketing allows State Wide to remain #1 in South Central Virginia Real Estate Sales year after year!

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Topic:
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Groups:
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31 Days of January - New Years Resolution
Tags:
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Rainer
42,491
Dennis Helmstetter
Real Estate Teams LLC - Frederick, MD

Great compendium of all the arguments - thanks

Jan 17, 2011 10:59 PM #1
Rainmaker
166,194
John McCarthy
Bean Group Portsmouth NH - North Hampton, NH
Realtor - Seacoast NH

Roy,

You are the man! Thank you for re-posting Larry's article and saving it from "the blog roll abyss." Don't know how I missed it when first posted. This says it all.

Jan 17, 2011 11:05 PM #2
Rainmaker
861,225
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

GOOD MORNING ROY!  I let two sellers talk me into higher prices and they are experiencing all of this right now.  Even though they dropped their price a while ago to meet these guidelines - they lost out on potential buyers the first month!  It is dangerous to do! -- G

Jan 17, 2011 11:07 PM #3
Rainmaker
841,108
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good morning Roy, the price must be right for the house to sell...

Jan 17, 2011 11:39 PM #4
Rainmaker
1,025,886
Gloria Todor
Century 21 Absolute Realty - Springfield, PA
& Doug Durren (484) 431-3686 in SE PA

Roy, Great re-blog.  Listening to one's Realtor for guidance is so important when setting the selling price. 

Gloria

Jan 18, 2011 04:05 AM #5
Rainmaker
5,512,788
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks for your comments and special thanks to Larry Atkins for his post. Have a great day! We had to clear a thick layer of ice from everything this Tuesday morning in Maryland.

 The colors of winter in Maryland. Life is good in Montgomery County!

Jan 18, 2011 04:16 AM #6
Rainmaker
429,725
Larry Atkins
State Wide Realty Co. - Farmville, VA

Roy, just wanted to say thanks for another reblog....I hope your readers enjoy!

Jan 18, 2011 01:20 PM #7
Rainmaker
5,512,788
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is sometimes a good practice to revisit old blogs and reblogs. We might even find some good ideas for current posts. 

Jan 14, 2019 12:44 PM #8
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Rainmaker
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Roy Kelley

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