Considering Selling? Beware Setting Your Selling Price Too High

We all want as much as we can get for our home. After all it is OUR castle and in our eyes it is worth a lot. But too often homeowners stumble out of the gate by setting their selling price too high and out of line with comparable homes in their area. Dropping your price too late can seriously impact and impede your home's sale.

Your home's best chance of selling is when it first goes on the market. Agents are constantly looking for new homes on the market and THAT gives you a huge advantage.

But if you start out with a high sales price, then have to drop it later -- your house is "old news." You will never be able to recapture that flurry of initial activity you would have had with a realistic price. Your house could take longer to sell.

Even if you do successfully sell at an above market price to an uninformed buyer, your buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable sales for the last six months and current market conditions do not support your sales price, the house won't appraise. Your deal falls apart. Of course, you can always attempt to renegotiate the price, but only if the buyer is willing to listen.

Your house could go "back on the market."

Once your home has fallen out of escrow or sits on the market awhile, it is harder to get a good offer. Potential buyers will think you might be getting desperate, so they will make lower offers. By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received.

If you would like a Current Market Analysis, contact me.