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Affect The Sale of Your Home
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HOW DOES PRICING AFFECT THE SALE OF YOUR HOME?
"The Price of Overpricing"
By Thomas Ervin
Thomas Ervin is a nationally syndicated
real estate columnist.
The biggest detriment to selling real estate is the all too common
problem of overpricing. For the last 20 years, I have been approached
by anxious sellers who want to know why their property is not selling.
The answer is always the same: The asking price is too high.
Why do people make the common mistake of asking too much? There are
several reasons. Some owners expect the present home to bring them enough
money with which to purchase a more expensive home. In other words,
they just are not facing reality. Others price it too high because they
have not had their property evaluated by a professional. Relying on
hearsay only, they put a price on their property that does not compete
with other available properties.
An asking price must satisfy three basic criteria:
- The asking price must be competitive with the asking price of similar
- It must allow for some negotiation so the buyer feels that he or she
struck a fair agreement.
- The final negotiated price must give the seller the highest possible
return considering the condition of the property and the marketplace.
If your home is overpriced, here is the sequence of events you can expect:
- Salespeople, knowing it is overpriced, will not show your home.
- Your home will sit on the market while others around you are selling.
- Prospective buyers, seeing your home on the market for a long time,
will begin to feel that there's something wrong with your home.
- You will begin to get anxious and lose patience.
- Because of the time restraints you are under, you will reduce the
price below the asking price of competing properties.
- Your property will sell for a lower price than it is worth.
Time and time again, it seems to happen as I have described above. An
owner who does not know or ignores the market facts in order to try to
get top dollar ends up getting less than fair value.
ADVICE: Be careful when setting your original asking price. Ask
your RealtorŪ to present you with all the pertinent market facts.
If you are planning to sell your home now or in the near future, contact
Mark Lummis. Any reproduction of this site is prohibited.
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