Darrel Stretch

Real Reasons That Realistically-Priced Homes Sell First

  • Buyers are aware of lengthy market exposure and usually attribute this to overpricing.
  • Merchandising your property is done for results -- overpricing reduces the response and, ultimately, results.
  • Buyers educate themselves with market comparables. If your home does not compare, it won't sell.
  • The proper pricing of any commodity, especially a home, results in an earlier sale.
  • Buyers will avoid overpriced homes and look elsewhere.
  • If overpricing causes a home not to sell, the monetary loss and the many inconveniences could be overwhelming. (Delay in job transfer, owning two properties, wear and tear on your present home, loss of good purchase elsewhere, carrying costs).
  • Homes usually sell at a "Fair Market Value!" Pricing a home realistically will bring an early sale, fewer inconveniences and a greater monetary return.

The Problems of Overpricing

  • Agents will show your home to validate a better price for a comparable property.
  • The property has a historically longer "time on the market" and, therefore, a lower "net" to the seller due to accrued holding costs.
  • On sales involving a high loan-to-value ratio, the financing could be in serious jeopardy due to appraisal.
  • It increases the property's chances for lower exposure because most agents, in preparing showings, want to present only the very best options to their customers.
  • The brokerage company has a tendency to be less likely to offer maximum advertising support because the same dollars could be spent on properly-priced properties which very clearly would generate sales.
  • The property can become lost in what is called the "computer shun." Buyers qualify for price ranges. If you are above the upper limit on the computer run, your home may not be considered.
  • The same principle of the "computer shun" can be applied to the multiple listing catalogue. The upper limit cuts off at a certain page.
  • Due to the increased term, the property runs the risk of becoming "shelf-worn." Hence, any offers that do come in are below what they could have been, if proper pricing were initiated from the start.

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