Posted over 13 years ago

Munson|Montejano Realty-#1 Reason Homes Don't Sale

Munson|Montejano Realty-#1 Reason Homes Don't Sale- Price is determined by The real estate market, not by your Realtor®, and not by you. When you insist that your property be priced above the current market value, your property will not sell.

When real estate agents agree to take an overpriced listing, it's called "buying the listing". Basically they agree to what YOU believe the value is, just to get your listing. Once they have your listing, they must ask for price reductions over and over again. "Buying The Listing" really doesn't make sense though because they've "bought a listing" that will never sell. This is a "lose-lose" situation for both the Seller and the agent.

So wouldn't it make sense to price your home right from the get go? It is a proven fact that you will receive the largest number of showings on your property in the first 2-3 weeks on the market. It is also a proven fact that overpriced homes sell slower and for less money.

If there’s anything we can take away from the plethora of Bank Owned Foreclosures is they certainly know how to price a home to move!

It's real easy to shoot yourself in the foot by overpricing your home. Your home will almost always sale at or above market value by pricing at or below market value.

So why is that? Well think back at when YOU were buying a home. Remember when a “great deal” came on the market and everybody and their agents were “swarming” to the open house? You placed your offer only to find out their were 10 other offers and they were going above the asking price? This “bargain price” created an auction affect and got people excited. THAT is how banks are pricing their homes and if you want your home to move quickly and for the most amount of money, this is a winning strategy.

So why don’t sellers do it? I think it’s because there’s a little voice inside of our head (and pocketbook) that says “what if”.

“What if”- I can get $50K over market value. (even if someone were excited enough about your home to pay $50K over appraised value, their lender won’t loan the money if the value isn’t there. No loan, no buyer)

“What if”- I don’t get multiple offers and I only get one offer (May be still overpriced!)

Often fear (and greed) hold us back from making smart choices! Don’t feel bad though, even Real Estate Agents are guilty of senselessly overpricing their homes. Somehow when it’s our turn to sell all of our “market knowledge” becomes goo and leaks out of our ears! It’s like the hairdresser with bad hair!

The bottom line is, almost always, an Over Priced House will sit on the market longer and sell for less than it should have had it been priced strategically from the beginning.

Munson|Montejano Realty-#1 Reason Homes Don't Sale

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