Setting your home’s selling price above its actual market value may seem like a great idea…right?
You have room to deal with buyers who like to bargain aggressively. Plus, your agent can comfortably take his or her percentage without compromising what you’ll receive from the sale. Sounds like a win-win situation, right?
Well, the process of property-selling goes deeper than that. A well-maintained house that has been priced competitively from the get-go is more likely to sell within the higher end of its value scale. It is also expected to get off the market in a relatively shorter period of time.
When it comes to home pricing, agents know best.
As a homeowner, your house is your first and foremost concern. As such, this results in you having limited knowledge of the world beyond the borders of your own home. It is because of this limited view of the market that some homeowners have a tendency to overvalue their property. In many cases, they place emphasis on upgrades that have little value to a buyer.
There is a common misconception that real estate agents severely undervalue houses to sell and get them off the market as quickly as possible. While unscrupulous agents do exist, most are concerned with making sure your house is accurately priced according to current market conditions.
With this in mind, it’s important to be receptive to your agent’s advice on how to prep up your home for a sale. Potential buyers often respond to a listing within 7-10 days after posting, so making it attractive from the start (e.g. pricing) increases your chances of having a quick sale.
As the popular saying goes, “First impressions, last.” The same rings true for your house listing price.
Take advantage of the early momentum when you first put up your house for sale. An overpriced listing that is inactive for weeks often ends up having its price reduced until it reaches a point that is more in tune to what the market perceives its value to be.