Home sellers always ask me this question. Here are some reasons why you should not list the price too high when you list your house:
When a new listing comes on the market it creates the greatest buzz. Agents see it on the hot list and email information to their buyers. Buyers who search online, who have set up automatic alerts for new listings find out about it , people driving by the house see the sign and call for the price.
Buyers look for homes in their price range. eg a buyer may be qualified for $300k may search for homes from $275k to $325k.
If you have listed your home for $350k and are willing to come down to $325k after a few months, you have already eliminated prospective buyers looking for homes such as yours because they will look only upto $325k. By the time you lower the price they may have found a home and if your home is still on the market they will wonder why it did not sell .
Yes many homes sell for lot less than original list price. The questions you should ask yourself are 1. Do you really want to sell and move on or do you want to just test the market ? If you are not serious about selling you can certainly test the market.But please be honest with the agent so the agent can decide whether to take the listing or not.
I have seen some listings that come up on the market every year and when I show these homes neighbors say they have seen these people have been trying to sell for a long time.
There is usually a window of opportunity and that is when the house first comes on the market. It is important to list it right at the start and hope you will have multiple offers rather than have to reduce the priceand go through the inconveniences of having your home on the market for several months.
You should not give away the house . You should get the highest price in shortes time and this is possible with a good market evaluation , by knowing about supply and demand and about about your competition.
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