Setting your home’s selling price above its actual market value may seem like a great idea…right?
You have room to deal with buyers who like to bargain aggressively. Plus, your agent can comfortably take his or her percentage without compromising what you’ll receive from the sale. Sounds like a win-win situation, right?
Well, the process of property-selling goes deeper than that. A well-maintained house that has been priced competitively from the get-go is more likely to sell within the higher end of its value scale. It is also expected to get off the market in a relatively shorter period of time.
The biggest takeway here? Of the 75 homes that sold, 50 did not require a price reduction because they were priced accurately to begin with. They sold for an average of 99.5% of the asking price in 12 days. Contrast that with the 25 that still sold but required a price reduction and took a whopping 120 days to sell for an average of 92% of the asking price. Another 25 didn’t sell at all. Overpricing your house doesn’t mean it sells for more money, it just takes longer. Not only does it take longer, it sells for less too.
Of course, there are a number of things that contribute to the time a house spends on the market. However, the initial pricing structure has proven the be one of the most influential factors in determining the time to closing.
When it comes to pricing, agents know best.
As a homeowner, your house is your first and foremost concern. As such, this could result in you having limited knowledge of the world beyond the borders of your own home- which, in this case, is the real estate industry at large. It is because of this limited view of the market that some homeowners have a tendency to lean toward overpricing their homes – they are just that attached to it.
There is a common misconception that real estate agents severely undervalue houses to sell and get them off the market as quickly as possible. While unscrupulous agents do exist, the majority of them are more concerned with making sure that your house is accurately priced according to current market conditions. Speaking for myself and the agents who I routinely come into contact with, we are overwhelmingly Realtors® that abide by a Code of Ethics. We are obligated to look out for your best interests, and if your goal is to sell your home in a reasonable amount of time overpricing your home will not help you achieve your goal.
With this in mind, it’s important to be receptive to your agent’s advice on how to prep up your home for a sale. Potential buyers often respond to a listing within a couple of weeks after posting, so making it attractive right from the start (especially when it comes to pricing) increases your chances of having a favorable sale.
As the popular saying goes, “First impressions, last.” The same rings true for your house listing.
Take advantage of the early momentum when you first put up your house for sale. An overpriced listing that stays inactive for weeks often ends up having its price reduced eventually until it reaches a price point that is more in tune to what the market perceives its value to be.
About the Author: The above article on Overpricing Your House was written and provided by Karin Carr, an authority on the Cherokee County, GA area, as well as a leader in the field of Real Estate sales, marketing, and technology. Karin can be reached via email at [email protected] or by phone at 404-855-1807. Karin has helped many people buy and sell metro Atlanta area homes for years.
Thinking of selling your home? I have a real passion for buying and selling Real Estate, as well as marketing & smart home technology. I’d love to share my expertise!
I help people buy and sell real estate in the following metro areas: Canton, Woodstock, Kennesaw, Acworth, Marietta, Roswell, Alpharetta, Milton, Ball Ground, White, Waleska, and Cartersville.
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