Dangers Of Overpricing A Listing

If you would like to sell your home for what the market is bearing today, pricing becomes crucial.  Home prices have been bogged down by a series of problems, from restrictive lending policies by banks, to the weak housing market.  Foreclosures have been the biggest drag!  In every community and in many parts of the country!

The good news is that more homes were sold in the first quarter of this year ….. since 2008.  This is the best opportunity in our lifetime to be buying real estate. 

Remember, don’t overprice your listing….

1.  IT WILL MINIMIZE OFFERS – An overpriced house discourages prospective buyers from making offers since the difference between the asking price and the market price becomes substantial.

2.  AGENT ENTHUSIASM AND RESPONSE – Agents lose interest in property that is overpriced.  Remember, Agents Sell Homes!  They do not spend as much time showing the house as they would if it were priced right.

3.  QUALIFIED BUYER EXPOSURE – Overpriced houses fail to attract qualified buyers, or attract “wrong” buyers.

4.  DECLINE IN SHOWINGS – Agents avoid showing overpriced houses in order not to lose credibility with buyers.

5.  LOSES PROSPECTS FROM SIGNS – Prospective buyers who learn about the house from the sign get turned off it it is overpriced.  They do not pursue the matter to even see the house.

6.  OVERPRICING LIMITS FINANCING – Financial institutions and mortgage companies finance only a percentage of the real value of the house.  If the house is overpriced, they usually will finance a lower percentage, thus reducing the available financing.

7.  WASTE OF ADVERTISING DOLLARS – A house that is unrealistically priced fails to get normal advertising response.  This reduces the effectiveness of advertising and results in the loss of advertising dollars.

8.  LESS FOR SELLER – Eventually market interest in the overpriced property completely declines.  The first 6 weeks of a new listing gets you the best offer.  It is better to sell when you want to and not when you have to, as you wouldn’t want to sell at any price.

Thinking of getting your house sold…for the best price possible?

Contact Jolie Powell Realty – 631-473-0420

We have been your neighborhood realtors….who know the marketplace…INTIMATELY!