Pricing a home in today’s market, where demand is outpacing supply in many areas, can be one of the biggest challenges real estate professionals face. Sellers often wish to position their home at a higher price point than recommend and many agents go along with the idea to keep their clients happy. However, great agents realize that telling a homeowner the truth is much more important than worrying about whether they will still like them, as overpricing a listing is not doing the seller, nor the prospective buyers any justice. Sellers often think: “If a home doesn’t sell for this price, I can always lower it later.” Monitor the buyer interest closely and do not wait too long to make adjustments. Research proves that homes, that have listing price reductions, sit on the market longer, ultimately selling for less than similar homes in the end.
Each time a price reduction occurs, buyers naturally think that something must be wrong with the house. A buyer could potentially low-ball an offer price, because they see the seller as highly motivated to sell. Pricing a home correctly from the beginning eliminates these challenges from the start.
Overpricing a home could also lead to missed opportunities, as most buyers will search on line by certain price ranges and may not have even gotten to see the listing information, as it was outside of their range.
A much better strategy is to price a home correctly from the beginning, possibly generate multiple offers and have buyers compete to purchase your home. Wouldn’t this be a much better position to be in than having to chase the market?
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