When selling your home establish realistic expectations upfront about its price.
Some home sellers believe that it’s best to price their home high and negotiate down. The novice agent will buy into this concept when the seller suggests it, but an experienced agent knows the golden rule - overpricing a property will ultimately under value it in the end. At first glance, it seems to be a good idea, but it can be disastrous to profits.
If a house is priced too high for too long, it will often linger on the market, and observant buyers will be suspicious as to why it’s not selling. Then if a realistic offer is made, the seller is often insulted that someone would offend them with such a “low offer.” But in reali- ty, the offer made by the buyer is just fair market value or close to it.
Pretty soon negotiations begin to ping back and forth, and it be- comes more of an arm wrestle than a fact-based process. By over- pricing a property initially, a homeowner is actually at a disadvan- tage against the other homes in the area.
When buyers view your property, comments will flow about what is missing in the home in comparison to the other houses seen on the home tour. Because of the elevated price, the seller’s property is psychologically thrown into a different class of homes. Their higher- priced home will be categorized with properties that have more amenities, or square meterage and in comparison with other homes legitimately priced in that range, it will appear to be lacking in value.
Price your home according to market value.