When it’s time to sell your Frederick home, pricing your home competitively is one of the most important things. We all know that prices rose dramatically in the first half of this decade, but have recently seen a decline. Given that, it can be difficult for a seller to reconcile the amount they probably paid with the amount buyers are willing to pay today. The temptation is to overprice and make decreases as you go along. Unfortunately, you probably won’t realize it’s too high until much later, after you chase the market down.
Here are just six of the disappointments you’ll find with an overpriced house:
- Buyers’ responses to your ads will probably be slow, since they recognize overpricing. Remember, people buy by comparison and if they are working with a buyer’s agent, the agent is giving them recent statistics.
- Buyers who are interested may be the wrong ones because they’re looking for a home priced the same as yours – but with MORE features. You’ll be missing the buyers who could and/or would buy your house.
- Your overpriced home will help buyers make a decision on other homes that are priced fairly. You’ll be the homeowner that sells your neighbor’s home.
- Very few buyers will even make an offer on an overpriced home. In a declining market, their lower offer is still not a great bargain since the final price is probably no less than “fair market value.” In a declining market, buyers are trying to insulate themselves from further decline.
- After your house has been on the market for several months, buyers will notice the number of days on market and may assume there is something wrong with your house. After a house becomes “stale” in the psychology of buyers’ thinking, the seller will most likely end up lowering the price to a point less than they could have gotten if they’d priced the home correctly when first listed. This is called chasing the market down.
- If you do find a buyer at your price, their mortgage application could be rejected because of a low appraisal; the house simply won’t have the amenities to appraise for what the asking price indicates.
What can you do to solve the pricing issue? Work with an experienced Frederick real estate agent who knows the market in your neighborhood. Take advantage of the research and advice your real estate agent can offer, and you’ll be sure to avoid the pitfalls of an overpriced home.
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The Highland Group
Chris & Karen Highland * 301-831-9947
Turning Point Real Estate – 301-831-8232
email us: isell4u2@msn.com
Text Us: 301-401-5119