“Should I price my home higher to leave room to negotiate” or “I am in no hurry to sell my house.”
This is a question I get when I list a home. ..Many sellers believe that it is common for a buyer to offer lower than the house is listed for. In most cases, this is the farthest from the truth.
A seller who lists their home for $10,000 more than a Real Estate agent recommends because they believe this will leave them with $10,000 in negotiating room is making mistake. Today home buyers are extremely knowledgeable and savvy. The internet has made it extremely easy for consumers to obtain information. If a home is overpriced, buyers will not look at it. So, the homeowner who prices their home higher to leave room to negotiate won’t have anything to negotiate because potential buyers won’t waste their time looking at a home they know is overpriced!
A home is priced correctly, the buyer’s Real Estate agent should be providing their client with information so they can make an educated decision on what to offer a seller.
There are many Real Estate agents to choose from in your local area. When interviewing just don’t select the agent with the highest list price and doesn’t have any facts to back it up. Agents are in the business to sell houses and offering a list price that is unrealistic is not going to accomplish this, thus wasting their prospective sellers time as well as their own!
It is not uncommon for a seller to say, “We are in no hurry to sell, so we want to list our home for $300,000, even though you suggest and your market analysis shows that the market value is around $275,000.”
Being in no hurry to sell, does not mean overpricing a home is a good idea. If a seller is not in a hurry, the best option will be to wait until the seller is in a position to price their home correctly.
Pricing a home high because the seller has time means the house will sit on the market. Homes that sit on the market for an extended period of time begin to develop a “stigma.” Buyers begin to ask questions, such as, “what is wrong with the home?” It’s possible that there is absolutely nothing wrong with the home, other than the seller is asking an unrealistic price.
Bottom line, price it right, it will sell! Pricing mistakes in Real Estate can be avoided if sellers are aware what they are and what effects they can have on selling a home. If a home is priced correctly, there should be several showings within the first couple days on the market and also an offer in hand within the first couple weeks! If there isn’t, there is a reason the home is not selling, normally the price is too high.
If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don´t hesitate to call, E-mail Caron directly or use the handy contact form on the website. I will be happy to set up a FREE market analysis to show how your home compares to properties recently sold and currently listed in your area (248)379-6651.
Caron Koteles Riha is a licensed Real Estate Broker with Real Estate One.
Email, Text or Call Caron at (248)379-6651 or Caron@CaronKoteles.com