The excitement your listing generates will be lost. Within the first 30 days is when most activity on a listing happens. An initial high price will discourage buyers, causing you to miss out on demand that has been pent up.
Your most qualified prospects will be lost! An offer wont come from buyers because they will never look at your property. They wont just "make an offer". The properties viewed will be the properties that are priced within their purchase range, because they know that they can not go above or afford anything over their price ceiling.
If you overprice your home, the homes next to you that are priced competitively will be sold faster. Your home will be the one that will be used for seeing what the value of your neighbors properties are worth by comparison. Your goal should be to enter the real estate market in a position that will attract buyers, not drive them away.
Your home can become stale or stagnant on the real estate market. Even if you reduce the price of your home, buyers may wonder why it has been on the market for so long. They may think something is wrong with the property even after the price gets reduced. Less than market value is what you might have to settle for. Your houses reputation on the real estate market comes on amazingly fast. This can cause your welcome to be worn out on the market.
You may have problems even if you do get an offer. Your home might not appraise for what you thought. This will cause a lender to not be able to justify the price as it relates to the loan value. They can think of it as risky and not lend the buying prospect the mortgage funds.
As far as your negotiating position goes, you will lose it both mentally and financially if your home is on the market for an extended period of time. No one will hurry to make you the offer you want on an overpriced home, so it may bring about a situation where you will take less money when they finally do make an offer.
Your stock broker cant dictate the price of a stock sale, and neither can the agent you list your home with dictate the price of your home. The price of your home is based off of simple supply and demand. Don't let an agent bid for your listing. If you overprice your home, you will join many other unfortunate people who have listings expire on the market and you will be subject to the risks discussed above. Make sure you choose the right agent to be able to reach the market and negotiate competency. Make sure that above all else, Choose an agent you trust!
Your most qualified prospects will be lost! An offer wont come from buyers because they will never look at your property. They wont just "make an offer". The properties viewed will be the properties that are priced within their purchase range, because they know that they can not go above or afford anything over their price ceiling.
If you overprice your home, the homes next to you that are priced competitively will be sold faster. Your home will be the one that will be used for seeing what the value of your neighbors properties are worth by comparison. Your goal should be to enter the real estate market in a position that will attract buyers, not drive them away.
Your home can become stale or stagnant on the real estate market. Even if you reduce the price of your home, buyers may wonder why it has been on the market for so long. They may think something is wrong with the property even after the price gets reduced. Less than market value is what you might have to settle for. Your houses reputation on the real estate market comes on amazingly fast. This can cause your welcome to be worn out on the market.
You may have problems even if you do get an offer. Your home might not appraise for what you thought. This will cause a lender to not be able to justify the price as it relates to the loan value. They can think of it as risky and not lend the buying prospect the mortgage funds.
As far as your negotiating position goes, you will lose it both mentally and financially if your home is on the market for an extended period of time. No one will hurry to make you the offer you want on an overpriced home, so it may bring about a situation where you will take less money when they finally do make an offer.
Your stock broker cant dictate the price of a stock sale, and neither can the agent you list your home with dictate the price of your home. The price of your home is based off of simple supply and demand. Don't let an agent bid for your listing. If you overprice your home, you will join many other unfortunate people who have listings expire on the market and you will be subject to the risks discussed above. Make sure you choose the right agent to be able to reach the market and negotiate competency. Make sure that above all else, Choose an agent you trust!
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