Many Sellers mistakenly think they need to build wiggle, or negotiating room into their price. Some Sellers elect not to take the advise of a real estate professional when determining the list price. This practice can cause untold damage to your goal of selling your home. Some of the problems resulting from overpricing are listed below:
Unscrupulous Real Estate Agents - There are those who simply want to get their sign in your yard. They are hoping to pick up buyer leads. They will tell you all the things that you want to hear. Remember, comparable pricing comes from looking at similar homes (square footage, bedrooms, bathrooms, garages, lot size, etc.) that have sold in the last few months. So, if all the similar homes in your neighborhood are selling between $200,000-$225,000, why will you home sell for $275,000?
I always ask my Sellers the following questions: Will you pay me 10 cents for a nickel? If gold is trading for $1,200.00 an ounce, would you pay $1,500.00? The correct answer is ALWAYS no. Well, Buyers in most instances will not pay for an over-priced home!
Scare Off Real Buyers - Buyers are well informed and educated. They know the market they are buying in. Just like Sellers who want to maximize their net, Buyers want to minimize that. If you over-price your home, they will NOT visit! In addition if your home should be valued at $200,000 and you price your home at $225,000, your Buyer is not even seeing your home on their search.
Taking Too Much Time To Sell - An over-priced home will sit on the market. After a certain amount of time, it becomes stigmatized. "Something must be wrong with that house" "Why isn't it selling". Once these questions come up, the value of the perception of your property starts to decrease.
Appraisal Issues - So, the Buyer loves your over-priced home and makes an offer. If they are financing it, the bank will demand an appraisal to determine value. If you are over-priced, the bank will not finance the Buyer, and they may cancel the contract.
Arizona Home Brokerage will tell you the real market value, and will provide statistics to show our reasoning. We are proud to offer reality in realty! If you want to discuss the value of your home, call 480-236-0319 for a confidential market analysis.