Most experts would advise that the best way to increase your odds
of a successful sale is to price your home at fair market value. But, as
logical as this advice sounds, for many sellers it is still tempting to tack a
few percentage points onto the price to "leave room to negotiate". To
avoid this temptation, let's take a look at the seven deadly sins of overpricing: 1. Appraisal Problems
Even if you do find a buyer willing to pay an inflated price, the
fact is over 90% of buyers use some kind of financing to pay for their home
purchase. If your home won't appraise for the purchase price the sale will
likely fail. 2. No Showings
Today's sophisticated home buyers are well educated about the
real estate market. If your home is overpriced they won't bother looking at it,
let alone make you an offer.
3. Branding Problems
When a new listing hits the market, every agent quickly checks
the property out to see if it's a good fit for their clients. If your home is
branded as "overpriced", reigniting interest may take drastic
4. Selling the
Overpricing helps your competition. How? You make their lower
prices seem like bargains. Nothing is worse than watching your neighbors put up
a sold sign.
The longer your home sits on the market, the more likely it is to
become stigmatized or stale. Have you ever seen a property that seems to be perpetually
for sale? Do you ever wonder - What's wrong with that house?
6. Tougher Negotiations
Buyers who do view your home may negotiate harder because the
home has been on the market for a longer period of time and because it is
overpriced compared to the competition.
7. Lost Opportunities
You will lose a percentage of buyers who are outside of your
price point. These are buyers who are looking in the price range that the home
will eventually sell for but don't see the home because the price is above their
Most buyers look at 10-15 homes before making a buying decision.
Because of this, setting a competitive price relative to the competition is an
essential component to a successful marketing strategy. Interest rates are currently around 4.5.% and you only need a
downpayment of 3.5% on FHA or 5% on conventional loans.
It's a great time to buy real
estate so give me a call and let's start your home search today! Also,
if you are thinking about selling, a complimentary analysis of your home’s
value and what you can net if you sold your home “now”, contact me today!
Thanks for your time and I
look forward to assisting you with your real estate needs.
Sherry M. Cabrera, Realtor®
JP & Associates Realtors
5700 Tennyson Parkway | Suite 170 | Plano, TX 75024