Look...lets get this straight...every seller would like to get as much for their home as they can. Add to this the fact that no agent is hoping their seller will be forced to take less than they need to. Obviously most agents do not get paid until a buyer and seller come together and agree to price and terms.
Here are some facts I would like sellers to consider:
1. Home listings receive a large percentage of their interest (and showings) in the first three weeks on the market. If you overprice in the beginning to "see if you can get it" before lowering the price to the value your agent recommended. By the time you lower the price you have missed the largest percentage of potential buyers you will have.
2. Automatic email property notifications (a buyer agent can set up their potential buyers with a notification of all properties that fit within their specific criteria) go out the day the home goes on the market. This is important because these potential buyers tend to be the ones closest to making a buying decision. Let me give you an example of why overpricing will hurt you here....lets say the buyer told their agent they wanted a see homes between $200 and 250k. Your agent recommends you price at $240k...but you want to try $260k. Since the buyer only receives homes emailed to them between $200 and 250k your home never gets emailed to them. One month later when you lower the price to the recommended agent price...the buyers are doing home inspections on the house they just purchased and your home is already 30 days on the market...don't miss your best market!
3. You can ask anything you want for your home...but a good agent should have an opinion of value that takes into account what an appraiser may appraise the home for. If three homes in the neighborhood have sold for $220k to 240k in the last six months...and they are equal value and size to your home (with a like level of upgrades) an appraiser is not likely to agree to a selling price of $260k. Why would you ask a price that your home is not capable of achieving...even if a buyer agrees to it. Remember: the bank sends out an appraiser to protect their investment. They will not loan $260k on a home worth 240k...if the home goes to foreclosure they would be out the money!
4. I was taught early on in this business: Pigs get fat and hogs get slaughtered. Sell your home for every dollar it is worth...no less and no more. It has been my experience that sellers looking to get more than their home is worth generally end up taking less in the end...and they usually stay on the market longer which means they pay extra mortgage and interest payments to the bank!
5. If you tell your agent you want her or him to overprice your home...and they agree...find another agent. If your agent is looking to price your home for the right amount...and they are willing to walk away rather than do the wrong thing for you by overpricing the home just to get the listing...HIRE THAT AGENT. If your agent is willing to stand up for what is right instead of caving in just so they can make a commission they will represent you well in the transaction.
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