That doesn't mean you have to use "fire sale" pricing or give all your equity to ensure that your home sells in today's market.
What it does mean is that you have to be priced competatively with similiar homes that have actually sold and closed in the past few months.
There are lots of buyers out there looking right now in most areas, but those buyers are very, very savvy for the most part and they know just about as much about pricing for what they're looking for as most Realtors do.
Case in point. I recently sold a house to some buyers that put an offer in on another home in the same neighborhood as the one they ultimately bought, about the same square footage and other amentiites BUT the big difference was the one they settled on and bought was not only priced to sell but in almost 'move in' condition.
Priced to sell and move in condition; together that is a powerful, home selling 1-2 punch that works in most any market!
Here's a shot of the kitchen in the house we made the initial offer on. This house has been on the market almost a year, is about $25,000 overpriced for its current condition plus it needs lots of updating. We made an offer based on comparable solds in the area and the sellers countered back at near full price.
Dark, drab, old single pane windows, and sadly in need of a face lift.
Now compare the photo above with the one below. This is the kitchen of the house my buyers bought for 2.5% below asking price after 2 days on the market. They felt good about paying that price because they saw the value offered.
Light, bright kitchen, updated throughout AND in almost 'move in' condition.
This brings to light the pitfalls of overpricing your house in today's market. Here's what will likely happen.
- Your overpriced home will likely help other sellers that are priced more reasonably to sell as buyers compare yours with others.
- Buyers will look and then leave because they're expecting more in your home based on your price.
- Most offers you get will be far below your asking price but closer to the current fair market value.
- Agents will use your home as an example to help them sell other homes priced more competitively.
- And even if you should find a buyer willing to pay "your price", you'll likely run into appraisal problems because lenders typically require appraisals to ensure they're not loaning their money on an overpriced home.
If you have a home to sell, put it in tip-top condition, price it to sell, and you can normally start packing because buyers will not only choose your home to buy but will likely pay you close to what you're asking.