Great post from Phyllis here- and one I appreciate being able to re-post. The key, of course, is to avoid time on the market. Any time on the market means a seller is typically paying a mortgage he/she doesn't want to pay. Maybe they're eager to get out of a house they're in and into another one- hating to pay the tab for the place they currently call home. Maybe they've already left a home behind- and now they're paying the mortgage for their new home- while trying to pay the one on the house that's become "yesterday's news" to them. Or maybe it's an investment that seemed great in 2006, but is a real financial buzzkill here in 2011.
For whatever reason their place is on the market, the objective is the same: get the dang thing off the market. Sellers need to realize that regardless of what Zillow or any other site tells them, their Realtor still knows the market better than the do.
Spend time on WebMD and go out to perform brain surgery? Nope. Trust that neurosurgeon to do his job and fix your punkin'. Doesn't make sense to follow advice of anyone but your friendly, neighborhood Property Manager, Leasing Agent and Realtor when looking to get that place sold, either.
So, you are selling your home. But you are deadly afraid of low-ball offers coming in. And therefore you think it best to tack something on to the estimated fair market value of your home, just to have a buffer for the anticipated back and forth negotiations! But, seriously, why would anybody want to over-price their home to counteract a low-ball offer?
Just look at this scenario. Pricing a home at or below the current market value will attract many more potential buyers, especially if it's a home that shows really well. Therefore, you'll most likely receive a higher number of offers. The moment buyers hear that there are other offers it will induce an increased sense of urgency causing them to fight over it (they really want your home... it shows well... it's priced right).
Value pricing takes much of the anxiety and stress out of the home selling process.
Nevertheless, many sellers still fear, even if they price their home for the market, buyers will still send them low-ball offers. Guess what... that is going to happen no matter what! But a sensibly priced home will invariably also attract much more serious buyers that understand that they are competing with other motivated buyers. If a house is priced right this still happens. Buyers will compete for it. And the serious buyers will offer exactly what it takes to get what they want, leaving the low-baller in the dust!
Isn’t this type of no-nonsense pricing approach a much better idea? It entices... instead of turning potential buyers off... "you'll catch many more bees with sugar than vinegar"... or so, the saying goes?!
Phyllis Lerner, Realtor
Broker / Owner
Voted 2010/2011 FIVE STAR Real Estate Agent by Westchester Magazine