Price It Right Now Or Lower It Later??
We can always come down...
Every homeowner always wants the most amount of money for their home when they go to sell it! That’s understandable! Why wouldn’t we? Our home is our castle and we have put a bunch of sweat and tears into it! Sometimes that gives us a false sense of value - one based on emotion and not on facts. I get asked all the time – "Can’t we start at our price and come down later if we don’t get an offer?"
Many homeowners feel this kind of strategy won’t make any difference on the final sales price. That’s unfortunately a terrible mistake! Testing the market is a risky practice in overpricing a home! The National Association of Realtors in its annual reports, states that once you have had 12 showings without any offer produced, that puts your home in an "overpriced" category, in the mind of potential buyers!
In today’s market, it’s all about being the "king of price" and the "queen of beauty"! Contrary to what is commonly thought, once your home is listed for sale in Johnson County, if you’ve overpriced it, there will not be room to negotiate price because you probably won’t even get an offer to do so! Your home will sit on the market and the buyers will discount it more with each additional day it is on the market. If it’s way too high – you’ll probably not even get anyshowings! Eventually you will need to reduce it significantly to get it seen and then sold – and most probably with a sales price below what would originally have been attainable. You need to start your home's listing by having it within a range where the buyers feel it’s worth the value! Even today with low inventory, there are homes that are just sitting on the market because of the old seller attitude of "we can always come down".
The most exciting time for a new listing is the first few weeks it’s on the market! Potential buyers are combing the market looking for a home of good quality and a good value! So don’t start off on the wrong foot! Give yourself every advantage by realistically pricing your home from the beginning! It'll be more profitable for you in the end!
Here’s a list of a few things to consider:
Location, Location, Location: You can’t control the location of the home, or the amenities in it – ie: bedrooms, baths, floorplan etc. But you can determine it’s value!
Buyers determine the price: The home is only worth what someone is willing to pay for it! The appraisers & lenders have to justify its value based on comparable sales in the area within a recent time frame!
Sellers truly control the condition & access: As a homeowner – you want to show your home in its best possible light! Take the extra time up front (prior to putting the home on the market) to do some maintenance, upgrades, prepping,staging and more!
Related articles:
5 Things NOT to do When Pricing Your Home!