Home Seller’s Pricing Strategy
Typically, the seller’s main objective is to receive the highest sales price for their home. This is accomplished by strategically pricing the home within the market to generate the largest pool of buyers. Having a realistic pricing strategy from the start increases the likelihood of a timely sale, with fewer issues and a higher sale price. Overpricing a home only benefits neighboring home sales as a comparison tool.
Purchasers gain market knowledge by viewing multiple homes within their price range. They have a good understanding of fair market value. If your home is priced outside of the competition, potential purchasers will be less inclined to make ANY offer on your home. You will be left outside of the marketplace and your home will sit unsold. A listing price that takes into consideration the competition will ultimately receive the most exposure and highest selling price.
Overpricing is the most common reason for homes to sit unsold, and as a result generate a negative perception to buyers. Buyers who see a home with an excessive number of days on the “for sale” market typically show hesitation to even view the property because of fears the home has underlying problems. Slowly the home develops a negative perception and begins to be a fixture serving only to help your competition sell their homes. Historically, homes with more days on market sell for less than fair market value as the only solution to gain exposure is to drop the asking price low enough for buyers to overlook the negativity.
Sellers don’t want to spend their invaluable time meticulously preparing for the market place and for showings that ultimately yield no offers. Pricing a home over market value prevents it from selling at the highest sale price. Added to this, your cost of selling increases as you continue paying the mortgage, and all the expenses that come along with home maintenance, plus keeping your home in “show ready” condition. This is not only expensive, but also stressful.