Testing the market is usually not the best way to go about selling your home. You're really better off pricing it right the first time. Click through to learn the real story on how to sell your home quickly.
If you're a homeowner considering putting your house on the market for sale, the assumption is that you want to sell your house. Right? Selling it is the ultimate goal.
There are several ways to accomplish the objective of selling your property, but the fastest way to get to the closing table is to price it right the first time. Homes priced at what the market will bear sell in half the time of over-priced, comparable listings.
Speed is just one of the reasons testing the market is a bad sales strategy. Here are more reasons:
The asking price is out of their budget and won't show up in search results for a particular price range. These days 85% of real estate transactions begin on the internet. Buyers search listings according to ZIP code, school district, amenities, and price. If your home is in the right geographic location, but at too high a dollar amount, it will not show up in the buyer's search results.
In most real estate markets, a house is considered "stale" at 30 days past the list date. Potential buyers wonder why it is still available and might think there is something wrong with the house. The longer the house remains on the market, the less a buyer is willing to pay. It's better to get multiple offers that would drive up the price than to price it too high and have it sit on the market.
The mortgage lender will only approve a loan for the amount of the appraisal. If your list price is above the appraised value, a bank or other lender won't fund the loan. This situation puts any potential buyer using mortgaged dollars to buy the home at a disadvantage.
Your neighbor's house is cheaper and will get more attention. If there are multiple properties for sale in your area buyers will choose the less expensive version of their dream home. They will not pay more for the same (or very similar) product, a fundamental lesson in shopper buying behavior.
Here's another thing that might occur if your price is too high: real estate agents will be hesitant to show it to their buyers. As Realtors, we are held by oath to represent the best interest of our clients.
It is our job to have the most up-to-date information on available property in the area. We know what has sold recently, and why. If your house is above what the market will bear, we will relay this information to clients.
Please contact me today for help pricing your home correctly and ensuring you a smooth and quick home-selling process.