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