This week I’ve decided to discuss why it's not good for sellers to list their home over market value.
Many sellers think that they should start their price really high in hopes they will get ‘lucky’ and if they don’t, they can simply reduce over time and still get a good price.
The problem with this strategy is that buyers are very educated in today’s market and they can spot an overpriced listing from a mile away. The truth is most properties are selling within the first 30 days of being on the market and the most serious buyers will come through your home in the first week of being listed. If you’re priced too high, not only will you miss all the activity when you hit the market but over time as you start to reduce, your listing will start to go ‘stale’; buyers will think there is something wrong with your home. In most instances you will end up selling for a lower price than if you priced at market value from the beginning.
You want your home to look attractive but you need to have an attractive price as well, condition and price go hand and hand. The more buyers that come through your home, the better your chances of netting the most money possible.
Remember, a property is only worth what a buyer is going to pay and buyers want to pay fair market value for any given home.
Facts:
- The market value of your property drops the longer it sits on the market. Why? Buyer interest is highest when the property first comes on the market. If the property does not sell in eight weeks, people begin to think there is something wrong with the property.
- Buyers and agents educate themselves on market comparables. They usually make offers on properties that are listed less than 5% higher than market value.
- The average sale price to list price ratio is 98%-99%
If you have any questions or would like to discuss pricing strategies in more detail. Please don’t hesitate to get in touch with me. My door is always open :)
Email: [email protected] Mobile: 705.816.LAMB (5262)