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The Dangers Of An Over Priced Listing

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The Dangers Of An Over Priced Listing

The Real Estate market is heating up! Now's the time to sell, as home values have increased and home equity has returned. It's a great time to take advantage of selling in a Hot Market, and making thatmove upto your Dream Home.

You own a great home that you are proud of. You love the interior with it's open floor plan, your kids love the fabulous school they go to, and the neighborhood is safe. You have an idea on what you feel your home is worth, based on how much you love your home. A price that would return everything you have put into it, over the years.

Caution - This is where trouble begins. A seller who prices his home based on "Emotional Value", may not be realistic with the true current "Market Value" of the home.

What are the Dangers of The Overpriced Listing?

An overpriced home will NOT lure buyers. In fact, it will limit the amount of buyers who will even consider your home for purchase. When a home is first listed, it generates a very high level of interest from prospective buyers. The first 2 weeks of the listing time period, is the most crucial. It is SO important to be priced correctly from the beginning.

DO YOU WANT A FULL PRICE OFFER OR BETTER?

Price it in line with the current market. As a good rule of thumb - The Longer you are on the market, the lower the price reduction of the offers you will receive. If you are priced correctly, you should receive good offers at or above your list price - This Should Be Your GOAL!

Let's Test The Market and Price it High - NOT A GOOD IDEA!

Overpricing your home in the belief that you can reduce the price back later, is a strategy that can backfire badly. For example, by the time you reduce your price, you may have missed out on a surge of buyers interested in the properties like yours. Also, if prices are lowered, buyers may wonder if there's something wrong with the property that kept other buyers away. So to avoid selling your property below market value and wasting valuable time, don't fall into the overpricing trap.

How do you determine the currentMarket Valueof your home? How to you avoid the pit falls of becoming an over priced listing, which stays on the market for more than 30 days and becomes stale and undesirable?

Here are a few factors to help you determine the true value of your home.

What did Your Neighbor's Home Recently "Sell" For?

This is a great place to start in determining the current market value of your property. Sales within a mile of your home, with like-kind features, will give you an idea of what buyers are willing to pay, at this current time. When setting a price for your home, the listing level must strike a balance between your need to achieve the best-possible return and the buyer's need to get a good value. The market value of your home is determined exactly like any other commodity - What a buyer is willing to pay for it in today's market. Despite the price you paid originally, or the value of any improvements you may have made, the value is determined by the market forces.

Buyers look at a about a dozen properties on average before making an offer on a property. As a result, they have a good overview of the market and will compare your home against the competition. If it's not in line with similar homes on the market, buyer's will not consider it a good value for their money.

Where is Your Home Located?

You know the old saying"Location, Location, Location". Well it's true! Take a look at your neighborhood. Consider everything from curb appeal, to your school district, to the local crime rates. How close is the nearest grocery store, shopping mall, or entertainment? I know these factors are out of your control, but unfortunately they still play a role in how much you can ask for your home.

Another Real Estate saying is"Buy the least expensive home, in the nicest neighborhood", which allows for an increase in your home's market value. When you have the nicest home in a neighborhood that is less in quality, the reverse happens - you may have a hard time making all of your money back in the resale. Adjusting your list price accordingly, may be necessary.

Have You Made Updates to Your Home?

Buyers, now a days, are looking for turn-key, move-in-ready properties. They want the most bang for their buck, with the least amount of work to be done, to meet their standards of living. If you have not updated your home, you may want to consider doing so prior to listing. You will find that even the most minor updates will add value. Items such as updating light fixtures and ceiling fans, flooring, and paint. Renovated kitchens and bathrooms hold the highest rate of return on your investments. This would include updated counter tops, cabinets, and appliances.

Pricing According to What You Owe on Your Home - NOT a Good Idea!

Your home can be your nest egg and every homeowner wants to make a profit when selling. After all, it should be the biggest and best investment you've ever made. But the truth in the matter is, if the market is not performing in your favor you may have to adjust in your asking price. If you solely base your list price on how much you still owe on your mortgage, you more than likely will be overpricing your home. Watch out for this temptation....

Hire a Trustworthy Agent

Some Real Estate agents will tell you exactly what you want to hear, when it comes to the value of your home. They will do this to secure your listing. However, the truth is that they will not be able to sell you home at the overpriced, price you had in mind. You will receive low-ball offers, if you're lucky, and will be encouraged to accept one, causing you to be discouraged and disappointed.

Work with a Realtor who has the experience, expertise, and integrity to get your home SOLD quickly and at the highest price through proven marketing strategies. By pricing your home properly from the beginning, you will have multiple buyers, flocking to your open house, willing to make an offers and sometimes OVER the properly priced, list price!

Nothing better than multiple offers on a properly priced Home! It can happen to YOU!

CLICK ON THE LINK TO FIND YOU YOUR HOME'S MARKET VALUE-What IS MY HOME WORTH?