home shoppers may take months to find a new home, so they are continually looking for new listings, not ones that have been sitting on the market. If a high price keeps your home from selling quickly, buyers might shy away or counter with lowball offers. This is true in both "buyers'" and "sellers'" markets. In a buyer's market, a too high price just means that your home can go "stale" from a continued lack of buyer interest. Keeping a "too high" price for more than a week or two just means that serious buyers will go elsewhere. It will then take a dramatic change to reignite interest in the home. In a sellers' market, a "too high" price means that yours will be one of the few houses which failed to sell quickly. That, in turn, will create the impression that there is some "problem" with the house. Once again it will then take a dramatic change to reignite interest in the home. Assuming that the market will turn in your favor has a habit of proving to be unreliable. If prices in your area end up declining instead of rising, you could be forced to reduce the price drastically to catch up to the falling market. By pricing your home based on current market values, you can sell your home more quickly and for more money.
PRICE DROPPING
Here’s a mistake closely related to setting your initial price too high. If your home doesn’t sell after a few months, you might be tempted to make precipitous price cuts compared with similar homes in your area. Buyers will likely sense desperation, the way sharks sense blood in the water. Price competitively from the start. Don’t hesitate to reevaluate your local market. Work with your real estate agent to determine the fair market value of your home.
SUBJECTIVE PRICING
You have enjoyed living in your home for years; however, you’ve
93
Powered by FlippingBook