Sellers often say they want to “test” the market with an initial asking price that is often more than the market will bear. The theory is they want to build in some cushion for negotiation with a buyer. There are a number of reasons why this strategy can backfire.
The Early Days On The Market Are Wasted
A home does not gain popularity with buyers over time. During the first 30 days on the market you garner the most attention from potential buyers. The listing is fresh and receives the most exposure and online views during this period than at any other time. You do not want to squander this time of maximum buyer interest with a listing that is overpriced. The attention spam of buyers is quite short and they are always looking for the newest listings so the goal should be to price the home so it will sell within the first 30 days.
The Listing Gets Stale
When a home sits on the market for an extended period of time buyers begin wondering if there is something wrong with the home and have a tendency to pass it by. As a house sits on the market and it becomes necessary to lower the price a seller will often end realizing less than they would have if they priced it realistically from the start. Buyers are keenly aware of the effect of time and days on the market in relation to a home’s selling price.
You Help Neighboring Homes Sell Quicker
Buyers are going to compare like homes in an area and if your listing is overpriced they will seek the value priced listing even if they like yours better.
Not All Buyers Want To Make A Deal
If your price is set intentionally high in order to leave room for negotiation you may leave yourself no one to negotiate with if the price exceeds a buyer’s budget. A good buyer appreciates a home that is priced appropriately for the market.
Potential Buyers Miss Seeing Your Home
Buyers search for homes online in defined parameters, say $300,000 to $325,000. If you price your home at $330,000 when it’s true value is $320,000 you run the risk of being excluded from buyer searches and your online exposure decreases.
Wallingford PA Real Estate – Wallingford, PA 19086