Everyone wants to get more than their property is worth. If that were the case, we would all be selling our home. Sorry, not going to happen. First of all, buyers are not fools. They are savvy, well prepared and very aware consumers. Add to the fact that they may be working with a more savvy, more prepared and much more aware REALTOR, makes selling your home a daunting experience. Pricing is the biggest killer. An overpriced home only helps to sell all the other houses in the neighborhood.
Example: Dick has a home valued at $210,000 but insists that he want to market it at$250,000. He loves his home and thinks others will do the same. Sorry Dick, you're going to have a bad experience. First of all, buyers in the $240,000 - $280,000 range who are going to be looking at this house will not think it compares to others in that price range. They won't want it! It's got less square footage, a smaller lot, one less bathroom, no granite and the location is just OK compared to the houses in the same price range. Second, buyers who can afford this house that are looking in the $180,000 - $225,000 won't even make an appointment to see it! They can't afford it so they stay away. Ultimately, the seller has alienated the very same people that would want to buy his home. Go figure.
Couple all of this with the fact that the house will have to appraise for at least the sales price or the lender won't loan the money. Unless you find a cash buyer that does not care about what the house is worth, you're just going to sit and rot on the market. If you know a buyer like that, please call me as soon as possible. I've got some resort property in the swamp I want to sell to you.
Be smart. Price you property correctly. You will get the right price for you home and have buyers lining up to buy it.
Don't forget, you are a seller today, but a buyer tomorrow.
I enjoyed this post. I saw a real life example of this in my neighborhood recently. There are a number of homes in the neighborhood which have been on the market for six to twelve months. They are overpriced, and apparently the sellers aren't in much hurry to move.
ReplyDeleteA friend of mine in the neighborhood sold his house in under a week by simply pricing it perfectly. He understood your lesson (he happens to be a real estate agent) and was rewarded for his knowledge.