Home Selling in 11215>Question Details

ssaq111, Home Seller in 11215

Pricing high for possible early sale?

Asked by ssaq111, 11215 Thu Jan 10, 2013

I'll be selling spring 2014, but have been thinking about putting it up for sale in 2013 at a higher price than I would be seeking if I really wanted to sell in 2013. Any opinions on that strategy? If it doesn't sell, i would take it off market late summer or so, and list new spring '14.
So before speaking to anyone, I'm thinking I'd list ~$1m if I was pressed to sell in 2013, but would actually list it ~$1.2m on the hope that there is strong interest.

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At least you have been wise to ask Realtors' opinions on your selling strategy! List when ready, hire a Realtor and make sure her comparative market analysis ends up with you listing your home to match the 2014 housing market. The first month you have your home listed is the window to attract Realtors with their buyers and to get an offer. Buyers are very well educated these days and will simply remember your house as the over priced house from 2013 that the seller is still trying to sell in 2014. It is imperative these days if you want to sell your home that the list price is correct. Remember, your home will have to appraise if the buyer needs a mortgage and that could be another issue along the way if the price is too high and it doesn't appraise.
1 vote Thank Flag Link Thu Jan 10, 2013
Simply list your property when you are ready to sell, and price according to the market....why list an overpriced house to begin with.....
1 vote Thank Flag Link Thu Jan 10, 2013
Keep in mind that even if you luckily found a buyer willing to pay more--and if that potential buyer is utilizing a mortgage-- and if the property does not appraise--there is a very good chance your buyer will walk....
Flag Sat Jan 19, 2013
I may (and you may) think it is overpriced, but there is a chance we are wrong. I thought instagram was overpriced...the dodgers were overpriced. History is littered with "overpriced" sales.

The choice in 2013 for me is to list above market (X+20%) or not list at all. If I list in '13, there is a small chance someone pays up for it or mkt moves to me. If not, I just re-list in '14 at fair mkt rate (X).

Just like you may not be interested in selling the watch off of your wrist, if I offered you 20% more than what you think it's worth you may be happy to take the cash right there...

So i'm ready and happy to sell if the price is right, otherwise I'll wait and sell with a more conservative (and normal) strategy nxt yr.
Trulia may not be up for sale yet, but if they were offered $1b by google i'm sure they would attend those discussions.
sorry for all the silly analogies..
Flag Thu Jan 10, 2013
The key in this market is getting offers, the average price of all
listings sold are a lot higher. We are seeing a compelling story
between the expectations of sellers and the reality of what today’s
buyers are actually willing to pay.
Fajardo Delacruz
Licensed Real Estate Agent
Century Homes Realty Group llc
Direct Line: 347-932-0609
0 votes Thank Flag Link Thu Jan 10, 2013
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Thu Jan 10, 2013
Dear ssaq111:

I have many thoughts on your ideas here. First of all I do not think you should place the house on the market until you are actually ready willing and able to sell. Your strategy sounds like an experiment rather than someone who actually wants to sell their home. What are you going to do if you get lucky and get a really great offer, are you going to sell the house? If that is the case, just go into it with the mind frame that you are going to sell now.

If you just want to ask a high price to "test the waters" so to speak, you may be shooting yourself in the foot. You see, when the house sits on the market for too long it will get stigmatized in a negative way. People will think that there is something wrong with it and/or the price is just WAY too high. Once that happens, even if you take the house off the market and put it back on, rest assured, people, especially real estate agents will remember it and the negative stigmatization will still come into play. Or worse yet, they will see you lowered the price and think you are desperate.

Besides, if it turns out you do not sell, you will not be able to tell how the market will change during the course of a year. Just because you did or did not get certain numbers now, does not mean you will or will not in a year from now. There have been times in the history of real estate where market values would increase or decline by 10% or more within the span of a year. As a matter of fact, many areas hit hard by Hurricane Sandy are experiencing massive depreciation right now which will probably taper off once things get back to normal in those areas. As another example, interest rates on mortgages are at an all time low right now. A 30 year fixed mortgage carries an interest rate that is a full 1% less than it was a year ago. That give the buyer more purchasing power. A year ago a 30 year fixed mortgage for $500,000 would have cost a qualified buyer about $2,460.00 per month, with today's rates that same mortgage would cost $2,175.00. That gives the buyer $65,000.00 worth of additional buying power!

If you like to gamble, maybe your idea is worth while. I would dare to say that a better idea would be to have a (or several) real estate agents who specialize in your area come into your home and give you an estimate of its value. While this is being done the agent(s) will also show you similar homes that have sold in the neighborhood as of late along with home that are currently for sale. This will give you an idea as to where the market is at and how much you can potentially sell for. Then you can decide if you prefer to sell it now or if you want to wait.

I have been selling homes in Brooklyn since 1993 and would love the opportunity to discuss this with you further and/or assist you with selling. Please feel free to contact me at anytime. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Thu Jan 10, 2013
Thanks for the quick and thorough response. Definitely some points to think about there.
I just want to be clearer on my thoughts about it. It isn't meant to be an experiment to test the market. It's an honest interest to sell (for top dollar rt now). For $1.2m+ i would happily sell (what i think is worth $1m), and move up my plans by a year. I feel like since i don't need to sell, I can push for an above market price and only sell if buyer "convinces" me. (Almost like a limit order on a stock i guess. If for whatever reason buyers come and it jumps 20%..i'm out).
So if I had you and a group of agents value my place at X today, I would want to list at X+20%, and see if it catches someone's eye. If there's no interest this yr, i would price it inline next year and play it straight.
Again you make some good points on the psychological impact/consequences that the price changes may have. I just wanted to be clearer on my thought process.
thanks again.
Flag Thu Jan 10, 2013
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