Real Estate

Pricing the property correctly

I am constantly hearing from sellers who want to try a little higher and we can always adjust the price downward, if that doesn’t work. The problem with this theory is that they get stuck on the number and don’t want to reduce the price fast enough. The longer the house sits on the market, the more the buyers think they can write a lower offer.
A house that is priced at market value or maybe a little below market value will increase amount of interest in the property. It is hard to under price a property. If the property is truly below market value, the market will correct this by bidding over the list price. We have seen this several times lately where a multi offer situation occurs on a property because more than one person believes the house is worth at least what the house is listed at. Because people buy homes based on emotion and facts, people tend to increase their bid in a multi offer situation to get the property that they desire. This increases the price of the home.
Whereas if the property is over priced and nobody is looking at the home, the home becomes stale and stays on the market a longer period of time. Therefore it is suggested that if you are not getting showings you reduce the property every two to four weeks until you get an interested buyer.
A common understanding amongst real estate professionals is if you are not getting showing, the house is priced to high. If you are getting showings and no offers then there is something wrong with the house. Getting feedback will help determine why people are looking and not making an offer. It may be that the owner can fix what is causing the buyers to not purchase the property. If the owner cannot remedy the issue (location, floor plan, room sizes, etc) they may have to adjust the price to entice someone to purchase the property.
The value of a property is not determined on what the current paid for it, or the amount of money they spent to improve it. The value is not determined by what the realtor says, the county assessor, or what the neighbor down the street sold their property for last year. The true value of a property is determined by the market and what a buyer is willing to pay for it.
If you have questions about real estate, please feel free to call me at 405-213-2992 or visit my website

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