In today's Buyer's market, over pricing your property has a profound impact on the success of selling property. In a Buyer's market, it is not "when" your property will sell, it is "if".
Most Seller's do not intentionally over price their homes. Often, as market conditions change, sellers and Realtors can be caught off guard. If recent "sold" activity is not heeded, existing listings can quickly become over-priced.
How do you know if your property is over-priced? (if any apply...)
- After 4 weeks on the market (when working with a top producing agent), you have not had any showings or interest calls
- Homes in your area are selling even though they do not have the features equal to or greater than yours
- Feedback from your Realtor and experienced/trusted Realtors who have viewed your property recently suggest that the price is to high compared to the competition
- It didn't sell - in 90 days
How does over pricing hurt the chances of your property selling?
- Your property can become stale and buyers may ask why has it been on the market so long
- Realtors and buyers may assume that you are not serious about selling and overlook your property in favour of other, lower priced ones
- Buyers overlook your property because they do not want to waste their time
- Buyers and Realtors do not place offers because they fear confrontation and the stress of failed negotiations
- If your home has unique features you may get an offer but often it may be a low ball (low offer price)
- It is hard to get Realtors and buyers excited about showing your home
- Financing and appraisals become difficult and even if a buyer is willing to pay your price, the bank or lender may not finance the negotiated price
Not selling your property in the intended time, for the intended asking price, places tremendous amounts of stress on Sellers and Realtors.
Sellers see the value of their most important asset declining yet they may not "see" the activity employed to promote their home. On the other side is a Realtor who has paid thousands of dollars to maintain their sales and promotions plan without any income to support their business.
Still having trouble? Here are some parting thought processes for you
- All markets are relative. this means that if your property value has declined, so has everyone else's
- Don't take it personaly. It's just money - they print more of it everyday
- QTR. Ask yourself, how important is it to sell your property and if you did, what would you do with the "Quality Time Remaining". Holding out for a high price is no measure against moving on with the next phase of your life, goal, dream or adventure
- If you need more money than the market will provide, seriously consider not selling
- Price to sell fast. Beat the market or it will beat you and your price will erode further. In a Buyer's market, it is not "when your property will sell, it's "if"
- Do not suffer a new face wisely. Often, your existing Realtor has given you sound advice about pricing. You may have resisted the advice. Before you drop your current Realtor, consider giving him or her a chance to sell it at a lower price that you will accept
- Remember if the price is wrong, no amount of marketing and realtor skill can magically make someone over pay for your property
Avoid over pricing, regain momentum in your sales and marketing plan!
Do you have questions regarding pricing your home for sale in this market? I am always happy to answer your Real Estate questions.