Pricing the home right is so important for many reasons. I know you're probably thinking "she's a REALTOR®, she doesn't care what the price is, she just want's to collect a paycheck" WRONG! I do want to sell it and I do want a paycheck but I also want it to be a win-win situation for all parties. The sellers may say they need and want $$$$$$$$ out of their house but the fact is if it won't appraise for $$$$$$$$ it is not going to sell for that price. Lending institutions will not give a mortgage on more than the home is worth even IF BUYERS ARE WILLING TO PAY IT! (which most of the time they are not) When a property is overpriced, nobody wins. It will not get any showings and if it does, it won't get any offers. You risk the property being stigmatized as something must be wrong with it, since it has been on the market soooo long and nobody obviously wants it.
Here is why the REALTOR® wants the home priced right:
- Her marketing and advertising $$$ are not spent in vain. Advertising cost are expensive and believe it or not advertising dollars does not fall out of the sky, agents pay it out of pocket. It is frustrating to spend money on advertising that you know is not going to bring buyers. You can only hope to at least get a call from a smart qualified buyer who is not already working with an agent and sell them something else when they call and find out the overpriced advertised listing is not what they want.
- If priced correctly and fairly the property SELLS and the sellers do not have to continue making payments on this property (lessening their profit) and they can move on to their new dream home.
- Buyers will see the property as a value and fairly priced and jump on it before someone else does, many times with a full price offer because they know if they don't someone else may come along and buy it first. The fear of loss is always a great motivator.
- If they property is not priced right it will not sell, will not be shown and the listing will expire. Trust me agents will usually not show an overpriced property to buyer clients unless the buyer requests to see them since they know it will usually be hard to negotiate since it is obvious that the sellers may be unreasonable as to the properties REAL VALUE.
When pricing a home sellers should look at the home from the buyers perspective, eliminate their needs and wants and try to be as objective and practicable as possible. Remember how it is when you are the buyer and looking to make an offer. Why is it when you're the buyer you can think of reasons why you should not pay the sellers the price they are asking but when you are the seller you can justify your unreasonable price.
Next time you think all the agent wants is a quick paycheck, think again. There is more to it. The sellers want to sell at a fair price, the buyers want to buy at a fair price, the agent wants a win-win for everyone involved, a quick sale and a paycheck for services rendered. If you think real estate is an easy business and agents make a ton of money ask any agent who has retired their license or who decided it was not what they want to do and just quit.
Enough about that. Be sure to check out my newest listings at www.homesforsaleknox.com or my Southland GMAC site at www.brendajolly.net
Until later,
Brenda Jolly
