Tuesday, September 22, 2015

The Many Dangers of Overpricing Your Home

All of the home sellers we’ve worked with wanted to get the most they could out of their homes. No big shock there. And for many, time was also a factor. They didn’t want their homes to sit on the market for months, which often decreases how much you can get for your home as well.

Our goal is to help you set a list price that will get you the best price, quickly and with minimum hassle. If your home is listed at a price that is above market value, you will miss out on prospective buyers who would otherwise be prime candidates to purchase your home. (See the chart.) If you list at a price that is below market value, you lose out on potential profit and diminish the value of your home. 

More buyers purchase their properties at market value than they purchase above market value. The percentage increases as the price falls even further below market value. Therefore, by pricing your property at market value, you expose it to a much greater percentage of prospective buyers. This increases your chances for a sale while ensuring a final sale price that properly reflects the market value of your home.

Timing is of the essence

Another critical factor to keep in mind when pricing your home is timing. A property attracts the most attention, excitement, and interest from the real estate community
and potential buyers when it is first listed on the market. If your home is improperly priced initially, it can miss out on its peak interest period, which could cause it to languish on the market. This may lead to a below market value sale price or, even worse, no sale at all. 

Your home has the highest chances for a successful sale when it is new on the market and priced reasonably. This is where we can help. We can give you up-to-date information on what is happening in the marketplace and the price, financing, terms, and condition of competing properties. With these analyses and our experience, well help you find the right price for your home.

Source: Murney Associates, Realtors

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