Dear TZ -
I understand why you want to price my house at $250,000. I think if we price it at $275,000, we'll be able to negotiate and still get $250,000. And maybe we can even get $275,000 - we should at least try, right? What's the harm in that?
Of course you want to get as much money for your home as you can.
The problem with that kind of thinking is that buyers are very educated. There is a plethora of tools buyers can use to determine home values – the internet is absolutely full of ways to compare homes and home values. Most buyers are very aware of what homes are worth, and all are trying to get a good deal.
When your house goes on the market, the greatest potential for buyer traffic is in the first 30 days. By pricing it too high with the intention of dropping the price later, you completely bypass your best buyer candidates.
Overpriced home will simply sit on the market. Unfortunately, extended time on the market forces the question in a buyer’s mind of the possible bigger problems looming within the walls of the property.
When a home starts its listing life overpriced, it almost always sells for less than market value. With fewer buyers to choose from, zero leverage because of time on the market, too high an asking price, and carrying costs to maintain the property, most sellers find themselves getting the least from their investment rather than the most.
It's your home. All your Realtor can do is provide information to help you make your choices. But please make your choices based on fact, not fantasy!
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