The Price is Right
Wednesday, February 15, 2012
All of us that own our home have the mentality “Our house is worth much more than the one down the street”. Of course this makes sense to us because we bought it, and regardless of how long we have owned our home, we have made it special just for us. We have spent money on it, we have cleaned it, we have loved it.
In today’s “buyer’s market” I have increasingly had the challenge of helping a seller to see why it is so very important to price their home “right” from day one. With most price ranges in Southern Wake Co seeing at least a 6-12 month supply, we do not want a new listing to hit the market “over-priced”. What does this say to the potential buyer out there?
Mr. Qualified Buyer: “ Wow, this looks like a nice house, but why in the world would we want to go see it when it is priced so high compared to other similar homes? If the seller’s have started out with an unreasonable asking price, I expect they will think their house is so great they will not negotiate much. If we did indeed work out an agreeable price I am sure they won’t do any repairs because they will think they are not getting enough money for their home anyway! “
And then, this is what happens when the seller does not get any showings, or many, and they finally start agreeing to reduce their price;
Mr. Qualified Buyer: “Wow, this looks like a nice house, seems to be priced reasonably, but if it is priced so well and looks great why in the world has it been on the market for 8 months?? Let’s move on, there must be something wrong with this one. “
And then, if Mr. Buyer indeed decides to go ahead and look at the 'previously overpriced' home, and wants to make an offer it can look like this;
Mr. Qualified Buyer: "Ok, I really like this home...it is priced fairly well, looks great, but since it has been on the market so long I would like to make a very serious, very low, offer on it!"
Poor Mr. Homeowner will end up selling his home for less, and it will take him much longer, than if he just would have Priced It Right in the first place!
There has never been a time in my real estate career that I have showed more homes. My average buyer has sees at least 15-20 homes and sometimes still wants to see homes even if we are under contract to buy one already! This doesn’t count the 100’s of homes I am sure they have browsed online and decided not to view!
My Dear Home Sellers; we have to price your home right for our market right from the start to give it it’s best chance to sell!