One of the most important decisions in marketing your home will be the original list price of the property. Price determines whether buyers will look at your home or pass it over for another property.
If the home is viewed as a value, buyers will flock to the property early in the marketing cycle. Agents realizing that there is value in the home will contact their home buyers so they can view the property before it is gone. If a lot of people view that the property quickly, the seller could obtain multiple offers on the house thus driving up the asking price on the property or having buyers forego asking for closing costs or extras. Because the we market property online with instance access to new homes by buyers via multiple websites, I do not believe you can under price a property. If the house is under valued on the listing, the market will correct the price during a multiple offer period.
However I do believe that you can over price a home, cause it to sit on the market for a long period of time, adjusting the price over time to help draw in buyers that weren’t interested in looking at the original price. Homes that are on the market for long periods of time are often perceived to have issues whether it is true or not. Buyers worry why another buyer hasn’t bought the home by now. Consequently, homes that have been on the market for longer periods of time may receive lower offers believing that the seller is more motivated than the first week the property was on the market. Statistically we know that homes that stay on the market for long periods of time tend to get less money than the homes that recently came on the market.
Sellers who set the list price high and adjusting over time tend to get less than the seller who listed the property at or slightly below market value. Therefore I believe it is not advantageous for my sellers to price the property above market value in order to have room to negotiate. Let’s face it, if few buyers are looking at the property because of the price, then there is nothing to negotiate. If you will price the property at the market value or even slightly below, you will get fair market value in a reasonable time frame.
If you are thinking about selling your home or know someone who is, please give them my name and number. And visit my website at www.sandiwalker.net for additional information. 405-213-2992