Let’s face it, greed is one of the most powerful human motivators. We all want to get the most we can for ourselves and our families, and usually this involves money. So as we get ready to sell the single greatest financial asset we own, it’s only natural that we start to have fantasies that somebody is going to come along and pay us more money than the place is worth.
Forget it. This isn’t going to happen if you think otherwise you’re fooling yourself. If you overprice your home, not only will you waste your time but you’ll probably end up getting much less for it than you would have had you priced it correctly in the first place.
6. Room For Negotiation
Most people are under the mistaken impression that you have to start high in order to settle at the right price after negotiations. The facts show otherwise. As the statistics at the beginning of this brochure indicate, homes that are priced correctly sell very close to the asking price.
Think about the assertion that about two-thirds of sellers overprice their homes. With all those overpriced homes on the market, think of how great your home will look if you simply price it close to what it’s worth! The home will look like a great buy, and buyers will bid very close to what you’re asking. In some instances you may even have buyers bidding against each other and driving the price up!
7. Lower the price later
Faced with the choice between overpricing and under-pricing, most people would choose the former, and understandably so. The feeling is that an asking price can always be lowered if it turns out to be too high.
The problem with this strategy in a declining market is that by the time you do lower the price, the home will be worth less than when you started. This is known as “chasing the market”.
8. Bad Advice
Many people price their homes according to advice given to them by their friends, relatives, lawyers, or accountants. These advisors may be bright and may be experts in their fields, but they are absolutely unqualified when it comes to pricing a home, and this applies particularly to lawyers.
So if you want to sell quickly and for top dollar, set a seductive asking price. Pay attention to how the price sounds. An asking price of $199,898 sounds so much more appealing than an asking price of $200,000, even though it’s only a difference of $102.
As you may have gathered by now, pricing a home is not an exact science. You’ll know whether or not you’ve priced your home correctly after you’ve had it on the market some time. Ask your Realtor how long the average home is staying on the market in your area. If you’ve priced your home correctly, you should be able to sell it or at least get offers within half that time period. If you haven’t at least gotten offers, then you should go back and re-evaluate your pricing.