Homes to sell, preparing and pricing for a competitive market. Repeatedly, I have seen many eager sellers overprice their homes when trying to sell. They want to “test the market” and see if they can receive a higher offer than what the market says the home is worth.
Does any of this sound familiar?
“I’m in no hurry to sell.”
“It’s easier to lower the price than it is to raise it.”
Pricing Homes to Sell Gets You Moving Quicker!
Overpriced homes sit on the market month after month without any meaningful offers. After enough time passes without showings, the seller becomes frustrated and often wants to fire the current Realtor. This happens quite often.
Mr. and Mrs. Seller hire Realtor #2, and guess what the first thing they do is? They lower the price to where it should have been from the beginning.
The market dictates what a home is worth. Granite countertops and immaculate landscaping may help your home sell faster, but they will not necessarily make your home appraise for more money.
Statistics show that you will only attract about 2% of prospective buyers when your home is overpriced by 10% or more. However, nearly 60% of buyers will consider a home priced at fair market value.
Listen to Your Real Estate Agent
- Statistics show that a home gets the most attention during the first 30 days on the market.
- Your home will generate the most interest when it is first listed.
- If your home is priced correctly from the beginning, you will receive a higher level of interest.
- This can lead to more showings and multiple offers.
- Multiple offers can sometimes result in a sales price higher than the asking price.
- In most cases, the longer your home stays on the market, the lower the final sales price becomes.
- Time on the market works against you.
Your Real Estate Professional Can Help You Price Your Home
Something important to consider when pricing homes to sell is that lenders only loan based on fair market value.
For example, if your home is listed at $400,000 and a buyer offers full price, the sale is still subject to the home’s appraised value. The lender will order an appraisal, and if the appraisal comes in at $375,000, that is the amount the lender will finance.
At that point, you have three options:
- Ask the buyer to pay the additional $25,000 out of pocket (which rarely happens).
- Lower the sales price to $375,000 and proceed to closing.
- Reject the appraisal and keep the home on the market.
When pricing homes to sell, it is wise to consider the competition in your market. Why would a buyer choose your home over another comparable property? If your home is overpriced, chances are they won’t.
For more home-selling and home-maintenance tips, contact Chuck Tanner. I will help you get the most money for your home!
