Part 1 of my series, “Don’t Make These Home Seller Mistakes” (view chart) discusses pricing your home for the South Forsyth real estate market. To sell... or to sit?
The South Forsyth real estate market is very competitive and, as you can see by the chart provided, agents considered overpricing your home to be the biggest mistake a seller can make, by far.
TRUTH #1- The fair market value of your home is determined by the market – that is, what today’s buyers are willing to pay - not by what you need or want out of it.
TRUTH #2– If your home is overpriced, agents may show it to make another property look good by comparison – DON’T SELL YOUR NEIGHBOR’S HOME!
With roughly 90% of all buyers now using the internet to augment their home search, today’s buyers are very savvy and have access to much more data than previous generations. These buyers are comparing your home to similar homes currently on the market and to the price of similar properties which have recently sold.
Research conducted by the National Association of REALTORSâ shows that more buyers purchase their properties at fair market value – not above it. The percentage of buyers increases even more when the price drops below fair market value.
THE DANGERS OF OVERPRICING
� Fewer buyers will be attracted and fewer offers received.
� The property attracts “lookers” and helps competing houses look better by comparison (don’t sell your neighbor’s home!)
� If a property does sell above true market value, it may not appraise, and the buyers may not be able to secure a loan.
� More “Days on Market” may actually lead to the property selling below market value.
A home generates the most interest in the real estate community, and among potential buyers, during the first 30 days it is on the market. If it is not properly priced during this time, you miss out on this peak level of interest.
Buyer Interest -vs – Time on the Market
Once a property has been on the market longer than the area norm, buyers begin to:
� fear there is a problem with the house
� think that the seller must now be desperate to sell and make a lower offer.
As you can imagine, either of these scenarios can be detrimental to your bottom line!
If you are thinking of selling your South Forsyth home, please call me and I’ll provide you with a copy of my full Seller Pre-Listing Preparation Package.
*Graphics and data provided by Berkshire Hathaway HomeServices Georgia Properties.