The fact of the matter is that your home will sell at its market value. Over pricing your home will most likely cause it to stay on the market for too long. The best chance to sell your property is within the first seven weeks. Pricing it realistically increases the chance of a timely sale.
Here are some important facts to consider:
- To reach maximum exposure the price must be competitive with similar properties.
- A buyer will typically look in their pre-determined price range. Pricing your home too high will only hurt your chances of exposure to qualified buyers.
- If your plan is to adjust your price at the time of sale, know that you are not putting yourself in a favorable position. If you adjust your price now, your chances of attracting serious buyers will only grow.
- Receiving a reasonable offer on an overpriced property is unlikely. The buyer will most often make an offer that is very low, if an offer is made at all.
- Do not think that you will receive more for the property by asking more. Chances are that you will be offered much less as the exposure to it will be less.
- By pricing your home reasonably, your invite the possibility of receiving multiple offers, as more buyers will see it.
Why Sellers want to Over-price
- Seller has over-improved the property
- Seller fears making a mistake in pricing
- Seller paid too much for the home
- Seller hopes to buy a higher-priced home
- Seller needs money
- Seller just wants to play the market
- Seller has a guaranteed corporate buyout
- The neighbors who sold in the past got a higher price
The Results of Overpricing
- The property will be marketed to the wrong prospective buyers
- Helps your competition sell their homes
- Will increase the marketing time and decrease the possibility of selling
- If you do receive an offer, having it priced too high may cause problems with the appraisal
MARKET TIME VS. SELLING PRICE
0-4 weeks | 98.1%
4-12 weeks | 96.4%
13 – 24 weeks | 94.4%
24-more | 91.1%
The longer your home is on the market the less it will sell for
According to a recent independent study, if a property is:
- priced 15% over fair market value, the chances are 10% it will sell.
- priced 10% over fair market value, the chances are 30% it will sell.
- priced 5% over fair market value, the chances are 50% it will sell.
- priced at fair market value, the chances are 95% it will sell.