Price your home to sell and it will

By
Real Estate Agent with RE/MAX Shoreline New Hampshire & Maine

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.

knoxville tn homes for sale

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.

knoxville tn homes for sale

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.

Posted by

Jim Lee , REALTOR®, Certified Residential Specialist (CRS)

http://JimLee.com  RE/MAX Shoreline

100 Market St., Suite #200, , Portsmouth, NH 03801 Phone: (603) 431-1111 x3801

Visit New Hampshire Maine Real Estate.com to search homes, get Seacoast area information, and find out how great living on the New Hampshire and southern Maine Seacoast really is.

 

Follow RealtorJimLee on Twitter

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Tennessee Knox County Knoxville Lyon's Crossing
Tags:
overpriced listings
right pricing

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
26,071
Bryan Washington
Keller Williams Realty, Eugene & Springfield - Eugene, OR

In any market, price it right and it will sell.  Overpriced homes don't sell, period...even in a hot market.

Very good blog.

Dec 26, 2007 07:34 AM #1
Rainer
71,971
Elaine Reese, REALTOR® in central Ohio
Real Living HER, Powell Ohio - Powell, OH

Excellent write-up and the photos tell the story. Liked your comment about overpriced homes helping to sell the others. That is so true - happens all the time!

Dec 26, 2007 10:14 AM #2
Rainmaker
600,292
Jim Lee
RE/MAX Shoreline - Portsmouth, NH
Portsmouth NH Realtor, Portsmouth, NH

Thank you for your comments. It seems so elementary but so often ignored.

Clean it up, fix it up, price it right, and it's sold, no muss, no fuss.

Dec 26, 2007 11:20 AM #3
Rainer
139,950
Jay McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Exeter, NH
Real Estate Broker

Hi Jim, we have written 3 contracts this month and two out of three have been multiple offer situations. Why, because they were priced right to begin with.

Also if you are overpriced you will always be playing catch up to the market.

Dec 26, 2007 12:44 PM #4
Rainmaker
659,636
Randy Prothero
eXp Realty - Mililani, HI
Hawaii REALTOR, (808) 384-5645
I am amazed how many sellers and listing agents have their heads in the sand and not facing the fact that they are overpriced and will not sell.
Dec 26, 2007 04:39 PM #5
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
600,292

Jim Lee

Portsmouth NH Realtor, Portsmouth, NH
How can I help?
*
*
*
*
Spam prevention

Additional Information