(BETHESDA REAL ESTATE) Everyone wants to realize as much money as possible when selling their home. It's a completely natural inclination to price the home high, thinking you can always come down in the future. The old "let's just try it at this price to see what the market will do." The fear of leaving money on the table overwhelms the desire to make an actual profit. But the beauty of the market is it corrects for under pricing with quick or multiple offers. The correction for overpricing follows...
A listing price that is too high frequently nets the seller even less money than an original price at market value. I'm often asked, but how can that be? For one, because people looking for homes in your price range will reject your home in favor of other homes in a reasonable price range. Over priced listings tend to ping pong, if you will, buyers out to other properties that show their value more. Think to times you've said as a buyer for any product, "they want that much for that!" And you moved on to the competitor's brand...
But the real rub is that buyer agents who would readily bring their precious buyers through your home will automatically cross it off their showing schedule because it's priced too high. They're only motivated to show homes with the highest probability of selling. Agents simply will not show overpriced homes because they work by commission. Professionals know their market values because it's their job to know. And they don't want to waste their time when there are 40 other homes they can show in the same price range. If they can't sell it they won't bother! No showings indicates market rejection you must react to immediately or you will fail to sell. Period.
It's only after 30-60 days have gone by that you realize you should have listened and decide to lower your price. It's too late. Your home has already been "branded" by the buyers and the agents in the community. So you reduce your home a little more. And little happens.
Finally, in order to attract attention back to your home, you've reduced your home price more than you ever thought you would, and you're now netting much less than if you had priced it correctly in the beginning. More importantly, the money you lost is not just the lower sales price, but all the extra interest you paid on your mortgage, all the extra property taxes and other carrying costs that accrue while your home is waiting to sell. We've all seen it happen time and again...
Hard Core Truth:
The seller is responsible for how much and for how quickly their home sells. A well priced home is practically sold when it's listed.
Overpricing almost always increases time to sell and adds to your carrying costs. That's why I spend so much time looking at homes and sales data so that you can make good decisions based on verifiable facts and figures. Otherwise, it's just my opinion... It's not in your best interest for me to tell you something you want to hear but rather that I arm you with the facts so you can be successful.
Next: Problem #3: Not Making The Right Home Improvements
For more information about real estate sales in Bethesda, MD 20816 please email me at josette.skilling@longandfoster.com or visit my website at http://www.josetteskilling.com/
Long & Foster Real Estate, Inc.
4733 Bethesda Avenue
Bethesda, MD 20814
301-385-9213 (cell)
240-497-1700 (office)
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