Why Won’t Someone Just Put in an Offer?
As the owner, you are entitled to ask any price you like. The idea of starting high so you have room to come down works in some markets, not in others. Let’s consider these points:
- A common problem arising from overpricing your home is that prospective buyers are “Scared off” by the price. Prospective buyers often know the maximum price they can pay to still qualify for financing. They may eliminate an overpriced home from consideration without ever looking at it!
- Look at the competition. Many buyers today shop for a home by comparison, as they would for a car or fridge. They look at numerous homes to eliminate from consideration the ones they feel are not competitively priced.
- Sellers often think only in terms of the cash they will receive when someone buys their home. Most buyers borrow money to buy a home. The bank or other institutions who loan money to purchase homes always require that the home be appraised by the lending institution to insure that the home is being purchased at fair market value.
- Sellers should also be aware that there are hidden costs involved when overpriced homes don’t sell rapidly. These include the sellers continued liability to pay interest on the mortgage, property taxes and insurance. Overpriced homes become “stale” on the market.
When determining the sale price of your property, you should be aware that competitively priced property will attract more qualified prospective buyers in a shorter period of time. If I can help, give me a call!