Justifying your sales price 3 times - yes, you read that correctly

**What a difference a year makes - or perhaps not so much of a difference.  I wrote this article a year ago and as I re-read it this morning I realized how much the words still hold true in our real estate market.  Perhaps even more so.**

 

Mr. or Ms. Seller:  Yes, you do have to sell the asking price for your home 3 times
or you run the risk of the below scenario happening to you, especially in Macomb
County Michigan.
                                                                




1) You have to sell your price to attract a buyers agent.  If you overprice
     the home I can guarantee that an agent working on behalf of the buyer
     will put it to the bottom of the list of homes to show their client. 

     Buyers agents in Macomb County have more homes available to
     them and their clients to view than we've had in recent years. 
     The agents in Michigan are typically weeding through close to
     100 homes in some instances that meet their clients criteria.

     If you overprice your home from the start the agents will not consider
     your home for their clients. It is that simple.   Please don't make
     the mistake of thinking that your home will be shown if it is overpriced,
     and that buyers and their agents can read your mind about "Just
     bring me an offer - I'm negotiable."   Even if you ask your agent
     to note that in his/her remarks the likelihood of a buyers agent
     seeing that is next to nothing.   We won't even get that far because
     we won't be pulling up your full listing information if it is priced too 
     high to begin with.

2) You have to sell your price to the buyer.  Buyers are savvy and
     educated.  The typical buyer has already done their homework
     prior to engaging a real estate agent on their own behalf. 
     They know the real estate market and the general values of homes
     in the neighborhoods they are interested in.  They don't want to
     become involved with an overpriced home and lengthy negotiations
     with a seller.  Why not?  Because the home down the street is
     going to be very similar and priced well.   They don't have to
     consider your home.  One more thing to consider:  A buyer does
     not want to insult you with what you may think is a low offer.
     Most buyers I work with will ask me "Will this insult the seller?"
     Buyers aren't your enemy - They want to work with you.  They
     also don't want to be dragged into a potential "left with bad
     feelings" transaction. 


3) You have to sell your price to an appraiser.   Let's say you do
     receive an offer on your overpriced home.  The next step in the
     purchase process is for your buyer and their mortgage representative
     to start working their way through that obtaining the loan.  An appraiser
     will be hired by the mortgage lender.  He or she will study comparable
     sales for your home, neighborhood, square footage, recently sold
     prices, etc.  When the appraiser realizes that your home is overpriced
     the purchase agreement that you thought you had on your home will
     almost certainly be "dead".  Why?  The lender of the loan will not loan
     money to a buyer on a home that is not worth the asked for amount
     by that buyer. Unless the buyer is willing to come up with the cash
     to make up the difference between the appraised amount and your
     agreed upon purchase amount you will now have your home back on
     the market.  The $30,000 you put into your basement?  It isn't worth
     $30,000 to the appraisor nor the mortgage lender no matter how much
     you wish it to be true.

When the real estate agent or broker you hire advises you on the real estate market
and the changing home values please listen.  Please ask questions.  Please understand
that agents and brokers in Macomb County are giving you the advice for a reason.
We've seen the dangers of overpricing homes first hand and on a daily basis.  We want
to work with you and for you.

Price your home to sell 3 times:  To a buyers agent, to the buyer, and to the appraiser.

If you would like advice on the market value of your home please don't hesitate to
contact me either via email or phone.  I would be happy to discuss with you your home
and needs in a non-pressured atmosphere.

Sincerely,

Kris Wales - RE/MAX Advantage 1, Inc.      Search Michigan homes for sale
Chesterfield Township - Macomb County Michigan
586-840-1876 (direct line)

http://macombhomes.com

©2007  Kris Wales - Macomb County MI real estate