Hello Everyone,
When homeowners decide to put their home on the market many have the misconception that if their house is "marvelous" they can just sell it at a higher price and all will be well. Well that's not always the case, when your home is overpriced in comparison to the other homes in your neighborhood it will come back to bite you. For instance when the home appraisal is done the appraiser is going to use the homes in the neighborhood that are similar to your home to determine the value. If the value that the appraiser comes back with is less than the contract price the buyer then has an issue because the lender will not give a loan out for more than the house is appraised for.
Another issue that arises when your home is over priced is the fact that it will sit on the market longer. This means more "days on the market" also known as DOM and when this happens typically people will over look your property because they assume that if its been on the market for 138 days then its a red flag that something is not quite right about that home.
Some agents have a habit of "okaying" the home being over priced when they are discussing pricing options with their clients. Mostly because they want to secure the listing and don't want to much fictions in the process of doing so. Its not always a bad I idea to start a little high because in most cases a buyer is going to send an offer lower than the asking price anyway.
So think twice before you over price..........
571 494 1502 for any questions please feel free to contact me.....
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