Fab Real Estate Blog: July 2007

The Importance of Price

I've written about pricing issues in the past.  At the end of the day, the list price of your home is one of your most important considerations.  If you over-price your home, it will not sell.

I don't show over-priced homes to my clients.  Why would I waste their time?
If you over-price your home, will you get showings?  Maybe.  Here's why: 

  • Agents who do not know home values may show your over-priced home.  Sounds great, doesn't it?  Well, not really.  Because buyers, after looking at many homes to buy, tend to learn about home values and they know an over-priced home when they see one.  A good agent will help their buyers learn to quickly spot over-priced homes, so they can together focus on homes that are priced to sell.
  • Agents looking to show the value of another property may show your over-priced home.  Why?  Because after their buyers see your over-priced home, and compare it to another home properly priced in the same price range, those buyers will then see the value of that other, properly-priced home.

Even if for some reason a buyer makes an offer on your over-priced home, their lender will require an appraisal.  If the home cannot appraise for the purchase-offer price, then you will most likely need to re-negotiate.  What will you have to re-negotiate down to?  The proper price/value of your home.  It is rare that buyers will pay the extra over an appraised value of a home.

I recently turned down a listing where the sellers wanted to price their home nearly $100,000 higher than its value in today's market.  Listing such an over-priced home would be a waste of my time, marketing and skills.  Unfortunately, those sellers found an agent who was willing to list the home - for $150,000 more than today's market value.  I don't know where that extra $50,000 came from.

These sellers will now clean their home daily to keep it in showing condition.  They will wait for the phone to ring for agents to say they're going to show the home.  They will vacate their home for open houses.  They will stress out over why no buyers are viewing their home.  They will get upset that there are no offers on their home.  They will not sell their home.  That's a shame.

Price your home properly from the start.  Along with proper staging and marketing, your home will sell.

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
CT Home Group
Keller Williams CT Realty
Connecticut Real Estate and Homes for Sale

Comment balloon 15 commentsDon Fabrizio-Garcia • July 17 2007 02:35PM
The Importance of Price
I've written about pricing issues in the past. At the end of the day, the list price of your home is one of your most important considerations. If you over-price your home, it will not sell I don't show over-priced homes to my clients. … more
New Milford Home for Sale: Amazing Remodel
New Milford, Connecticut Real Estate For Sale 295 Pumpkin Hill Road New Milford, Connecticut SOLD $399, 600 *** UNDER DEPOSIT IN ONLY 30 DAYS! *** *** CLOSED TWO WEEKS LATER! *** Amazing Remodel! 4… more
New Fairfield, CT Home For Sale: Wonderful Home with Privacy
New Fairfield, Connecticut Real Estate For Sale 28 Williams Road New Fairfield, Connecticut $415, 000 SOLD $410, 000 AUGUST 2007 *** UNDER DEPOSIT IN ONLY 5 DAYS *** *** MULTIPLE OFFERS *** Beautiful… more
Sellers: Use Your Books to Decorate
We all know that when preparing a home to sell, we must de-clutter and de-personalize. Recently, I was working with a seller who had a lot of books. An avid reader, the books were important to her, but she already knew she had to pack them… more
Dependents' Day
July 3, 2003 was the day we adopted our first two children. Being so close to Independence Day, we named it "Dependents' Day. " Yes, we celebrate it each year with fireworks. For information on becoming a foster parent or an adoptive… more