With the decline in home prices over the last few years, sellers are less inclined to be concerned with the danger of pricing their home too high. It’s normal to hear a seller suggest ” Lets start with this price, we can always come down later”. There are numerous problems using this approach. There’s nothing more discouraging for an owner than having buyers treat your home as if it’s contaminated with the overpriced plague and not a property worth viewing. Home buyers are super savvy today and will not waste their time on a home that’s irrationally priced.
Home buyers in general show the most enthusiasm and activity for a home during the first month of it being listed, after that period the excitement diminishes and the activity dwindles. Adjusting a price after that first month is a crap shoot with the original price still fixated in the mind of the buyer. Buyers will always remember the bad in a home and there’s nothing they remember more than a property with an inflated asking price.
Experienced realtors will show your home and use it to boomerang to the more fairly priced property around the block. With so little housing inventory now available, a well priced home becomes the talk amongst serious buyers. On the other hand, those owners that unreasonably price their home are forgotten very quickly. When one of the first questions out of a buyers mouth is “How long has this property been on the market,” a seller should be very cognizant of where they price their home right from the start. When a property has been lingering on the market for months, it conveys a message to the buyer a sense this home can be purchased at a reduced price. An offer a home might garnish six months down the road will probably be less than what the actual value would have been at the beginning.
Let’s assume by magic a seller gets an offer that both buyer and owner can live with but would still be above fair market value. If a buyer is obtaining a loan to purchase the property, the homes appraiser will bring the deal to a crashing halt. Even if a buyer is willing to over pay for a home, there’s little chance the appraisal will justify that decision. The conclusion for sellers are to price it right on day one or face the inevitable task of failure many months later. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home or to view local area homes for sale.