The Right Price To Sell The House Without Losing Money
Sellers often wish to price their home over actual market value in order to “leave room to negotiate.” Don’t use this strategy to set the price. It works against you.
Pricing your home 10% over market will cause just 30% of potential buyers to visit the property, whereas 10% below market will result in 90% of all potential buyers becoming aware of the listing.
Would you rather have a bidding war on your home or not have an opportunity to negotiate any offers at all?
Markets seek equilibrium between supply and demand. Too low a list price usually gets swiftly corrected because buyers compete and bid the price up to where it should have been in the first place. Too high a price has its own form of correction. It is not pretty. You get few showings and no offers at all.
The right price is best. But, just so you know, it is more beneficial to under price than over price a home. A price under actual market value will get valuable feedback a lot more swiftly than one that is overpriced. Which would you rather have; multiple offers or no opportunity to negotiate any offers at all?
There is a point when a home has been on the market too long. Real estate agents and their buyers start to assume the house is not desirable. They may think there is some kind of flaw that is keeping it from selling. They may also think the sellers are not being realistic about price.
The most buyer interest in a home is generated within the first 90 days. After that, a series of price cuts may keep the listing interesting for longer but you have also lost a lot of time. Buyers who would have been able to afford your house after all will have probably found something else. Your overpriced home helped to sell your competition.
An overpriced home often ends up selling for less than could have been obtained by pricing it right in the first place.
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