Sellers seem to always want to list their homes for the most money possible. They tell me, we can always come down, but you can’t go up. Let’s start several thousand dollars higher than what the comparable homes are priced at and if we don’t sell it in a few weeks we can come down. Unfortunately, the sellers often don’t want to come down because at that point they have associated this inflated price as the value for their home. The seller may decide to remain at that higher price for much longer than the realtor would suggest—holding out for the price they want. Eventually the listing contract may expire and the seller feeling defeated and irritated with their current realtor who couldn’t get them the inflated price may employ another realtor. Surely the second or third realtor will be able to get more money for them.
I tell sellers two things are true. First, something is only worth what someone else is willing to pay for it. Regardless of what you believe it is worth or what I believe it is worth or what the comparable say, the consumer will eventually decide what the value of a home is worth. An experienced and educated realtor will be able to advise the seller where to price the home to sell in a reasonable amount of time. Second, you cannot underprice a property. If you list a property slightly below market value (I am not talking about listing it at 50 cents on the dollar) and market the home effectively you will have multiple offers on the house. The consensus will be market value. There have been times when I have listed a home slightly under list price and then marketed it to the public in a way that causes multiple offers and a majority of the offers are for the exact same price.
Recently, I had a home that was listed at $130,000. It needed some cosmetic work however the bones of the house were good. The house would have been worth more money if it was updated. The seller did not have the money to do the repairs. I listed the house and held it open that first weekend. The seller instructed me they would look at offers after the open house. We had 4 offers. One was a low offer, two were identical and the one we took was slightly higher than the two that were identical. The seller closed the house at $123,000 with no closing costs or repairs.
Another time, I had a house which we listed for $ 50,000. It also needed work. We received 17 offers on the house and sold it for $60,000. We had several offers at or around $60,000. We accepted the one that was willing to take the house without any contingencies.
The point is you cannot under price a house. The market will correct for that. You can overprice a house and the market will respond with it sitting there unsold. Regardless of condition or location, there is a market value for all homes. My job as a licensed realtor is to help you determine accurate value so you can get the house sold for the most money in the quickest amount of time.
If you are looking for an experienced realtor to guide you through the buying or selling process please contact me at 405-213-2992 or visit my website: www.equityhomesteam.com