A Division of Silverhawk Realty

The Homeowner’s Guide to Getting it Sold


The Dangers of Overpricing

So you’ve made the decision to put your house up for sale. Usually the main thoughts that come to a seller’s mind when trying to sell a house, have to do with cleaning out clutter, slapping on a fresh coat of paint and sticking a sign in the yard with fliers. But what many sellers don’t realize, is that one of the most important decisions one can make when selling a house is price.

It is a common bone of contention between sellers and their agents but for good reason. We all love our homes and it is easy to believe with all the time and money we’ve spent there, that it is worth more than it actually is. Furthermore, it is also common thinking to believe that if the house is put on the market for a high asking price and it doesn’t sell, then it can be lowered until it does. In theory, this is a solid strategy, but in reality, this isn’t exactly how it all tends to pan out.

When a house is put on the market at a price that is too high, several things happen. First, agents and their buyers do not respond well because other properties in the neighborhood are considered a better value. Second, as time passes and the house sits on the market, others see that as an automatic red flag. Overall, overpricing results in frustration and a reduced net profit. You also increase the risk that you’ll run into appraisal problems later on as well.

This is why you may not agree with your real estate agent’s recommended asking price, but keep in mind, there are many factors that determine the ideal number for which a home should be listed. The factors that determine if a home will sell have to do with the terms and financing available to the buyer, the home’s condition, it’s location, the neighborhood’s current market conditions, the real estate agent’s ability to market the listing and the home’s asking price. Out of these six points, focus on what you have control over.

The Home’s Condition

Start with what’s cheap. Cleaning and clearing away clutter can make for a huge impact in the look and feel of the property. Closets look bigger and cabinets look as if they have more space. Paint is the second most drastic bang for your buck, just be sure to stay away from loud colors that send a shock to the buyer’s system. Stick with colors that are calm and neutral.

The Right Realtor

Not all real estate agents are created equal. That’s why it’s important to choose one that will market your house correctly and to the best of their ability. You want your house to be shown to as many potential buyers as possible. The larger the crowd that sees it, the faster you’ll find a buyer. The right Realtor knows how to promote online and offline through websites, flyers and open houses. Interview agents before signing any agreements.

Price

Lastly, the right Realtor will know how to price your house correctly. Beware of any agent who claims to be able to sell your house for an outrageous amount. It could be that they are trying to secure your listing over other agents based on false hope rather than the honest truth. A good agent will research and compare your property to those in the area to come up with an asking price instead of pulling it out of thin air.

If you have any questions regarding real estate or are thinking of selling your home, please feel free to ask!

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