Another take on the dangers of overpricing your property
Earlier today I found myself in a pricing discussion for lack of a better word with a client that I really like. The good news is they like me too. We get along extremely well and they feel confident knowing that I have spent a great deal of time researching their home and it's actual value.
They agree with me that their actual value is X. No problems there. The problem is they want their list price to be X plus about 12.4 percent more than what it is truly worth.
I have shown them over and over clearly why it is most likely impossible to find a buyer willing AND capable of paying their ideal price and they agree with me yet they want to "test" the market anyway. For those of us in the industry we know it's no longer just about finding a willing buyer. It's more about finding a willing buyer that can actually buy. Once you do you still need the house to appraise if there is a mortgage involved.
This led me to do a quick search to see how many hundreds of articles came up regarding the dangers of overpricing property. Clearly with the higher than expected amount of articles readily available people get it. Overpriced property doesn't sell.
I read the same suggestions over and over again and it left me wondering why in the world someone would run the risk of throwing tens of thousands of actual dollars away in a market that is declining? The only thing I can come up with is ego.
When someone asks you how your home sale is going you tell me which response feels better.
" I researched local agents, found one that I really liked that created a strong marketing campaign and we sold in a week with multiple offers." Sounds good right? When people take my advice this is what they experience.
The market stinks. We have a great house. It's listed about $45,000 higher than most on my street but it will sell eventually. My agent seems to be able to sell everyone elses houses but she just can't get it right when it comes to my house.
Having soldÂ about 140Â homesÂ in the pastÂ 4 years IÂ canÂ share with youÂ the happiest sellers I have ever met are the sellers who took my advice and priced appropriately.
Those that are convinced one person will come along and pay their price find themselves beaten up by the market, the buyersÂ and the buyers agents. EventuallyÂ they either remove their houses from the market preventing them from achieving their goal of moving on or to ultimately reduce to a price that is most likely lower than what I suggested in the first place.
The Andover/North Andover markets are always going to sought after by buyers who understand value. These buyers are educated, market savvy , internet friendly and are no longer swayed by painted wood cabinets with new hardware. They know a well priced property when they see it and they are willing to pay market value.
If you have questions about value in today's market I encourage you to call me.
I will provide you with honest advice and accurate answers.