A high price conveys the message that the seller may not really be interested in selling. And, when a home is priced too high, agents and buyers usually just cross it off their list and move on. After all, there are plenty of other listings. Of course, deciding the value of a home isn't an exact science, so it's understandable that a seller might put their home on the market with an asking price that is on the high side.
Additionally, most of us believe that our homes are really "worth more" than the one down the block, around the corner or the one next door that was just sold. And, if we are wrong, we can always drop the price later, can't we? Yes, but by then, the seller may have not only lost potential buyers, but they may have also driven off interested Realtors-and Realtors are the prime source of buyers. Generally, they bring the buyers.
When a property is put up for sale, the first 30 days are the most critical. Statistics show that's when most buyers (and Realtors) see the property. Interest is highest at this time. But, the higher price the property is on the market, the fewer the prospects (and Realtors) will view it. Thus, the initial period is critical with the proper pricing.
Some sellers, however, believe that if someone is really interested they will counter-offer. Some will, some won't. Some well-qualified buyers may just walk away. The bottom line is a high priced listing will turn many buyers off. Still, a seller wants to be confident he or she is getting the best price for their home.
The way to accomplish this is by talking to a real estate agent before listing the property. Ask for a comparative market analysis-that is, research what similar homes in the area have sold for recently. Compare your property to those, and have the agent help you calculate a fair market value. Be objective-even though it is your home. Remember, an over-priced listing will usually result in an unsold property.
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