Avoid These Five Pricing Pitfalls

When a homeowner is ready to sell, it's very easy to be snared in the overpricing trap. After all, we all want top price for our home, don't we? And we all know that prices have risen dramatically in recent years. Given that, it's logical that the asking price they set could be higher than "fair market value." Unfortunately, they probably won't realize it's too high until much later.

Here are just a few of the disappointments they might face with an overpriced house:

1. Responses to advertising will probably be slow, since the public recognizes overpricing. Remember, people buy by comparison.
2. Some prospects who are attracted may be the wrong ones. They will be attracted because they're looking for a home priced the same – but with MORE features.
3. Very few buyers will even make an offer on an overpriced home. The reason? Even if the owner accepts their lower offer, the buyers aren't getting a bargain since the final price is probably no less than "fair market value."
4. An overpriced home will help buyers make a favorable decision on other homes that actually are priced fairly. No one really wants to be the example that drives people elsewhere!
5. If they do find a buyer at that high price, the mortgage application could be rejected because of a low appraisal; the house simply doesn't meet the standards that the price would indicate

This all sounds rather bleak, so what can an owner do to solve the pricing issue? Work with an experienced professional who knows the market in the neighborhood. Take advantage of the research and advice that a real estate agent can offer. That's the proven shortest and surest route to setting the right price and having a successful sale. 

Regards,