If you’re thinking about listing your house for sale, you have a pretty good idea what the home is worth. So after doing all your research and comparison shopping, why do sellers sometimes hear a realtor tell them the value of your house might be lower than you anticipated. Everyone always wants to hear their home is worth more. It’s human nature. We all want top dollar.
Sellers: even in a short inventory “sellers’ market”, it is important to price your home correctly for the market. The Internet has helped most potential home buyers become very savvy. They have done their research and have a pretty good idea what the competition is going for, so if your home is over-priced, it could sit on the market a long time (unless there are some extraordinary features). Homes that sell quickly will almost always get more offers at better prices than those that have been on the market for more than a month or two.
Generally speaking, buyers tend to think that properties that have been sitting on the market for a while must have something wrong with them or that they must be over priced, so IF they make an offer it will usually be for less than the asking price.
Aside from all this, it’s miserable to have your home listed if you’re still living there. It’s hard to keep a home show ready, especially if you have children or pets. And, most of us worry about our possessions and lack of privacy. The solution is to get the home sold as quickly as possible.
In a very hot sellers market, some realtors believe that pricing your home lower than fair market value will bring in bidding wars. This has worked in many instances, but before you choose this option, think about how you will feel if you don’t receive multiple offers, or if all the offers you receive are lower than you anticipated. To use this strategy effectively, you should consider:
1. location – currently we are seeing the top selling neighborhoods those that are centered around walkable shopping and dining experiences.
2. amount and prices of competing inventory.
3. is your home in “move in ready” condition
4. holding offers for a week or so so more buyers have time to view the home and submit offers.
Many of these properties are listed on Fridays so an open house can be held over the weekend, and offers held until at least Monday evening.
It’s important to remember that no matter the condition of your property, if it is priced right for the location and condition, it will sell.