There is a ball rolling down the hill , it is picking up speed and if you don't watch out you are about to be smashed like a pancake. That is what happens when you overprice a property in hopes of a cash buyer walking in and writing a contract. Afterall, appraisals kill deals when you overprice your house and you find a buyers agent willing to write a contract for more than the market supports. A lot of what ifs, when you can really just price it to sell it!
“We can always go down, but we can’t go up,” is a common phrase thrown around when deciding how to price a home. My clients and the clients of agent’s everywhere often want to leave a little “room to negotiate” in their original pricing by adding a few percentage points to the cost.
Here’s why adding that padding is often a mistake.
1. It can limit the number of potential buyers who can afford your home. It reduces showings and creates an impression in the marketplace that the homeowners aren’t really serious about selling.
2. Serious homeowners who overprice their home often get caught in the trap of price reduction after price reduction trying to catch up to the market.
3. Most homebuyers look at 10-15 homes before making a buying decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy.
Obviously, under pricing a home isn’t good either. That’s why properly pricing a home early on is key to the home sales process. And why even though we don’t want to hear it, we should price fairly and shave off that potentially crippling padding.
Adrienne Kessler Keller