There is an interesting phenomenon happening right now that has many sellers scratching their heads.The seller thinks that he cleverly priced his house in a way that will get him the most amount of money because he added “wiggle room” into that price.The only problem is that although there have been a lot of showings, there have been no offers.
Let me explain why this happens.When deciding on a price at which to list a house, a seller typically looks at comparable properties that have recently sold or are his direct competition to determine fair market value.Then instead of pricing the house at or very near fair market value, he decides that a buyer is probably going to make him a lowball offer, so to compensate for that possibility he will build some wiggle room into the price.
This means that he is going to list his house at a price above fair market value expecting to sell it for something close to fair market value in the end.So what’s wrong with this pricing strategy?It typically results in no one making any type of offer at all.
All buyers out there right now are looking for a deal. Most of them have done lots of research by looking at homes on-line and discussing comparables and fair market value with their agents. So, when a buyer sees a home that he believes is priced too high, he thinks that if he makes an offer on that property, he won’t get as good of a deal as he would get if he made an offer on a property that was priced more appropriately – so he moves on and looks for the appropriately priced home.
Oddly enough, statistics show that even in this market when a home is priced right, it sells at very close to the list price.The moral of this story: Pricing it right from the start is the best strategy to get the best sold price.
Looking for a good buy on a home?Check out our Best Buys.
Wishing you sunshine everyday and the home of your dreams,
Jeri
P.S. – If you know someone who is having trouble making his mortgage payments, visit our We Care page and find out how Jesse, a Certified Distressed Property Expert, might be able to help.
