Over Pricing will lead to NO SALE

It's Sunday morning and I've just finished reading the Post & Courier. The entire back page of the Real Estate classifieds were open house listings for today. Many of these homes have been on the market for months and can be seen in the open house classifieds week after week. Why? Because more then likely they are overpriced for the condition or location of the home.

One of these properties is in a local Cainhoy, SC subdivision. Offered at more then $30,000 above the average home price in the neighborhood, it will take a very special buyer to rationalize the purchase price. The house is the most option filled in the neighborhood and would definitely bring a higher price in an adjoining subdivision. Each neighborhood has its own characteristics and price range. If you are going to upgrade above the neighborhood norm expect not to recoup your investment.

Overpricing for condition is another common mistake in today's market. If you expect to get top price for your home then it must be in top condition. If two houses are identical, are listed for the same price but one has worn carpet and the other has new carpet, prospective buyers will gravitate toward the new carpet first. The worn carpet home will quickly fall off the list of possible purchases for the majority of buyers. Worn flooring, functionally obsolete appliances, dingy bathrooms, single pane windows, popcorn ceilings, lack of landscaping, cracked and heaved driveways will all reduce the price. A good Realtor will take into account these deficiencies and price your home accordingly.

As a homeowner you may need to weigh your costs of fix up versus reduced pricing. If the fix up costs add value and don't exceed the average neighborhood home, do the fix up. First impressions are everything to buyers. If the fix up costs exceed the value, list the property at a reduced price immediately. It will sell quickly because it is seen as a value.

Remember overpricing a home will cost you thousands in mortgage payments if the home doesn't sell. Most overpriced homes remain on the market for well over 6 months. A properly priced home will sell within 30 days in any market.

Greg Flanagan is a Realtor with Exit Realty. He specializes in the Cainhoy, Wando South Carolina area. He may be reached at 843-818-8867 or www.FlanaganHomeTeam.com