As well-informed as some buyers and sellers may be about real estate, there are still popular misconceptions that Realtors® continue to hear from clients as they make a case for a particular price. When an agent says some reality checks are in order regarding strategies or expectations, listen carefully. Here’s a list of popular reality checks for buyers and sellers.
No one pays list price for a house.
∙ Actually, if the home is priced right for the market, people will pay list price. And if homes in the area are selling quickly and competitively, some buyers may even pay more than list price.
Let’s price our home twenty thousand dollars above the agent’s suggested price. That gives us plenty of negotiating room.
∙ Most buyers who feel your home is overpriced will move on to another home before even thinking about making an offer and negotiating.
∙ Qualified buyers in the price range your Realtor® recommended may not even see your home because the inflated price range will prevent it from coming up in search results.
∙ You’ll help others sell their homes before yours because overpriced homes help sell right-priced homes.
∙ If you wait too long to lower the price, your unsold home appears stale to buyers and they wonder what’s wrong with it, resulting in a lower sale price.
I want recuperate everything I spent on this home.
∙ Everyone does. But buyers pay what they think your home is worth based on comparisons to other similar properties in your area and recent selling prices. Location, physical characteristics of the property, market conditions, and current interest rates also have a bearing on how buyers evaluate your home and its price.
∙ Buyers do not base their offer on a seller’s desired proceeds, how much the seller expects to get over his paid price plus what he paid for improvements, or even appraisals.
Experienced agents comb through relevant data to figure an appropriate price range for selling a home. Use their knowledge to your benefit and make an informed decision on the right price.