You’re certainly not alone in pondering that question. Home sellers across the country have had their lives put on hold by the current market. While you can’t control the market—it is what it is—there ARE steps you can take to get your home sold in the timeframe you need. If you’re like many home sellers today, the last time you sold a home was in the previous seller’s market when the demand for homes was greater than the supply.
In such a fast-moving market, if you priced your home, say, two to three percent above market value, you had the luxury of rapid appreciation in your home’s value to cover what would be a pricing mistake in today’s buyer’s market. This meant that within 90 days or so, your home’s market value increased enough to make your once-high asking price now attractive to buyers. But those days are gone. And although no one can foresee when the current market will turn, it’s not likely to happen anytime soon.
The good news is that, despite the market, homes are still being sold. People still relocate. Families still need more space. All the reasons for buying a home are still in play. The big difference today is that supply is now greater than demand. You no longer have the luxury of a hot real estate market to cover a pricing mistake. And pricing a home too high is the #1 mistake sellers make in the current market.
“But shouldn’t I price high to have negotiating room?” you ask.
At first glance that logic seems reasonable. But pricing high is a mistake because it severely limits the number of agents who will show your home. Agents simply will not waste their clients’ time by showing homes that are overpriced when there are so many other comparable homes for sale that are priced right.
Listing your home at the lowest price you would accept will not cause you to lose money. Agents will have educated their buyers to the fact that homes priced right are the best values on the market … and that if they want a home, they will need to make an offer very near the asking price. This all but eliminates lowball offers.
It’s also important to understand that when buyers make a serious offer two to five percent below your asking price, they’ve already mentally bought your home. They’ve placed their furniture in the rooms and can see themselves living there. And ...
Because they don’t want to go through the agonizing process of deciding on another home ... when you stick very close to your asking price, it’s now much easier to get them to come up from their first offer than it would be to try in the beginning to get an offer on a too-high asking price and negotiate down to what you would accept.
When that serious offer comes, as your REALTOR® I run another property search to see what other options the buyers have at that time. Armed with this up-to-the minute information, I advise you in the final negotiations so that you neither price yourself out of the immediate market nor leave money on the table.
Other agents know my listings are priced right. If you want your home to get the activity it must have to find a buyer in today’s market, call me direct on my mobile telephone.
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