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The Pitfalls Of Overpricing Your Home

 
         SOLD

THE NUMBER ONE REASON  that homes don't sell is from overpricing.  Are we doing our job when we agree to our client's question, "Can't we just try?" or, are we doing them a great injustice.  How do you impress on them that their peak of activity will be in the first 3-8 weeks?  Overpricing will just hinder the whole marketing process and the result is, the seller always looses.

I think from the start you should impress on your clients what will be the end result of overpricing. We should explain to them upfront that:

1.  The buyer will go elsewhere to stay within the market even though they're very interested in the your home. The result is you've already lost that buyer.

2.  High market price will assuredly keep them from looking in the first place and if they don't come, you won't sell.  You've got to get them there in the first place.
 
3.  Potential buyers will wonder what is wrong with your home if it sets on the market too long and word gets around.  Possibly the buyer will think that they can offer you even less since your home hasn't sold. 

4.  Competition is great and with so many homes on the market, can you afford for your listing to be old news?

I stress to my sellers that their first showings will have the most impact. These showings will be from Real Estate Agents with clients that haven't found their dream home yet.  They may have already lost an offer due to under bidding, a home inspection issue or some other reason.  I wish they knew what we know! They need to keep in mind that lenders today base their loans on accurate appraisals and appraisers must base their price on comparable properties that have sold.  So staying within the market is crucial. Why not price slightly under the market price and increase the your traffic right from the start?

For me, I'd rather lose a client from the start then to agree with them that they are right when I know they are wrong.  I'd rather them remember me as the HONEST BROKER and not the greedy one! To be the Broker they can trust, well to me that is the ultimate!

TriWest, Realtors will create a Competitive Market Analysis and review this to discuss market strategy, and advice on possible ways to minimize time on market and maximize your return. By researching property tax records, recent homes sold and currently for sale, an accurate fair market price can be determined.  I'll walk through your property and give you advice on how to improve the visual impact of each room, yard, and your overall home. 

Call for an appointment today by calling our office at 325.692.6000 or my cell at 325.669.5770. If you have questions about this BLOG, send us a comment and we will respond immediately! 

Good day! 

 

 

Published Friday, September 10, 2010 8:23 PM by Ron Harmon, Broker

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# re: The Pitfalls Of Overpricing Your Home @ Friday, February 11, 2011 4:58 PM

Keep on keeping on...your attitude is the "right one", especially in today's changed market.    Your perspective is called integrity, and it will serve you well.

Li Read

British Columbia

Li Read

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