Setting your home’s selling price above its actual market value may seem like a great idea…right?
You have room to deal with buyers who like to bargain aggressively. Plus, your agent can comfortably take his or her percentage without compromising what you’ll receive from the sale. Sounds like a win-win situation, right?
Well, the process of property-selling goes deeper than that. A well-maintained house that has been priced competitively from the get-go is more likely to sell within the higher end of its value scale. It is also expected to get off the market in a relatively shorter period of time.
Of course, there are a number of things that contribute to the time a house spends on the market. However, the initial pricing structure has proven the be one of the most influential factors in determining the time to closing.
When it comes to pricing, agents know best.
As a homeowner, your house is your first and foremost concern. As such, this could result in you having limited knowledge of the world beyond the borders of your own home- which, in this case, is the real estate industry at large. It is because of this limited view of the market that some of you, the homeowner, have a tendency of overpricing your house – you’re just that attached to it.
There is a common misconception that real estate agents severely undervalue houses to sell and get them off the market as quickly as possible. While unscrupulous agents do exist, the majority of them are more concerned with making sure that your house is accurately priced according to current market conditions.
With this in mind, it’s important to be receptive to your agent’s advice on how to prep up your home for a sale. Potential buyers often respond to a listing within a couple of weeks after posting, so making it attractive right from the start (especially when it comes to pricing) increases your chances of having a favorable sale. Many homeowners choose a real estate agent based on whether they are agreement with their price. Be careful of the inexperienced agents who will agree to overpricing your home just to get the listing.
As the popular saying goes, “First impressions, last.” The same rings true for your house listing.
Take advantage of the early momentum when you first put up your house for sale. An overpriced listing that stays inactive for weeks often ends up having its price reduced eventually until it reaches a price point that is more in tune to what the market perceives its value to be.
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