I know the top concern for clients when they're selling their home is the desire to sell faster and for top dollar. There are always three prices for every home:
- What the seller would like to receive
- What the buyer would like to pay
- What the home will eventually sell for
You can ask for the moon and set your listing price well above market value, no matter how appealing your home may be, sooner or later, it will be up to you the seller, to accept that your home is actually worth "market value".
What is Market Value?
Market value is the highest price a property will bring if:
- Exposed for sale in the open market
- Allowing reasonable time to find a buyer
- Buyer knows all uses to which it is adapted
- Buyer knows for which it is capable of legally being used
- Neither Buyer or Seller acting under necessity, compulsion, nor peculiar and special circumstances
Simply worded, "Market Value" is what a knowledgeable, willing and unpressured buyer would probably pay to a knowledgeable, willing and unpressured seller in TODAY'S market place.
Overpricing is one of the most common reasons why homes don't sell. When you set an unrealistic price, it actually works against you.
Dangers of Over Pricing
- You will lose the most qualified prospective buyers for your home. Buyers will purchase properties that are within their price range, knowing they cannot afford anything above their qualifying price range. Potential serious buyers will not make an offer on your property because they will not see it.
- Over pricing will actually help sell other homes. Your home may be used by other Realtors to demonstrate the value of other competitively priced homes.
- Your home may become stale on the market. A house takes its reputation surprisingly fast, and prospective buyers may wonder why your property has been on the market for so long, or that something may be wrong with the property, regardless of whether you lowered your price. You may even have to settle for less than market value.
- You lose your negotiating power when the house sits on the market for a long time. Prospective buyers will not rush to buy an overpriced property, as a result you may feel compelled to accept less when they finally do decide.
- If you do get an offer, the agreement of purchase and sale may fall through. If the appraised value is much less than the offered value, then the potential buyer may face financing difficulties.
The answer lies with you, the seller, do you wish to shoot for the moon and have your listing sit in the market place, or do you wish to sell your home? I can help you sell your home and help you determine the best possible list price in today's market place. OMDREB April 2010 market Summary
I look forward to working for you