Pretend for a moment, your home is featured as the grand prize on the popular game show. Now, guess the actual price for which it would sell. Would you be over? Under? Would you say $1? I hope not! However just like the show if your number is too high you will bust, and you’ll lose the car and a vacation along with it. I’m going to help you avoid adding insult to injury.
Every market is competitive and with so much information at their fingertips, buyers are constantly comparison shopping. Consider one of the following options. You can attract those buyers and actually sell your home. Or, you can openly express words of encouragement in a foreign language while your over-priced home continues to sit on the market.
Overpricing your home is dangerous. Here are some reasons why:
- Most Buyers require financing. Lenders require an appraisal. They will finance either the appraised value or offer price. Whichever is LESS.
- When a Buyer comparison shops, they will purchase your neighbours property instead of yours.
- Buyer’s agents will show their clients the best deals first. Your home will continue to sit there over looked while others are being sold.
- You may end up selling for less than what you should have offered from the start anyways!
- A Buyer’s perception of a home is critical. The longer yours sits the more problems they will think it has.
To make an educated decision on a listing price for your home, you need to have the answer to these two important questions:
1) What is the average price of homes sold that are comparable to yours?
2) What are the active listings most similar to yours asking?
You should list your home within the average price of similar homes which have already sold. To lock buyers in, you need to price yourself ahead of the competition! Give them a reason to choose your home over someone else’s!
As of November 1st, 2010, the average Castlegar listing is 17% above the average sale price. These listings can, have, and will sit there for months. The average sale price comes from home owners who made an educated decision when considering their listing price.
Are you the next contestant?