Every seller wants the most money for their home in the least amount of time (no doubt you’ve see plenty of ads that promise as much). As an educated seller, you should know that in almost every case, the asking price you choose has a dramatic effect on the speed of your sale and on the price your home commands.
Prices fall into four categories:
Commonly seen when a seller has a strong emotional attachment to their home, blatant overpricing may signal that an owner is unmotivated to sell, paid too much for their home, or needs a certain amount back out of the sale in order to finance their next purchase. While we can empathize with these feelings, overpricing is not the way to bring in more money. Property values are determined by the market, and savvy shoppers are well aware of what their money can by. If buyers don’t feel that a home offers genuine value, most won’t give it a second glance. Overpriced homes tend generate lowball offers or sit on the market for long periods, leaving people to speculate that there’s something wrong with the property.
About three-quarters of the homes on the market are overpriced by 5-10 percent. These listings tend to sit for longer than they should. The market will catch up with them eventually, but in the meantime, the price of the properties that these homeowners want to buy next is also increasing. It’s another case of overpricing dragging out the process, with no real gain in the end.
Priced Correctly at Market Value
Let’s say it together: real estate sales are based on supply and demand. Homes that are realistically priced, based on thorough market research, are the ones that consistently attract interested buyers. These competitively-priced properties usually sell within a reasonable time frame for close to asking price.
Priced Slightly Below Fair Market Value
If market conditions are right, pricing your home slightly below fair market value can achieve surprising results. At various points over the past year, buyers from the GTA have fuelled an increasingly competitive market here in the tri-cities. During these periods, slightly under-priced homes have been seen to generate multiple offers and sell quickly (often within in a few days), commonly for well above asking price. Is it the right time to try this strategy? Give us a call – finding out is worth a few minutes of your time. And as a seller, keep in mind that you’re never obligated to accept an offer if you’re unsatisfied with the terms.