Archive for August, 2010
5 Reasons Your Home Won’t Sell
August 26th, 2010 categories: Home Selling, Real Estate, Sacramento Co. Real Estate
Avoid These Pitfalls and Sell Your Home Quickly
You’ve heard the expression “timing is everything” well, truer words were never spoken when it comes to selling your home. The number one reason homes don’t sell is due to overpricing. I often hear sellers say: We can always come down later- right? Well…there might not be a chance to do that if you overprice to begin with. Historically when your house goes on the market the greatest potential for buyer traffic is in the first 2 weeks. By pricing it high with the intention of dropping the price later you are completely bypassing your best candidates for purchase.
The standard purchase contract requires that agents have an obligation to do what is best for their clients. Clearly, showing overpriced listings does not fall into that criterion. With inventory high, agents will undoubtedly choose the homes prices within their buyer’s price range that meet the current Fair market Value. If your home doesn’t fall into that category it’s obvioulsy not going to be shown.
Your neighbors will love you because you help them sell their home. It’s simply the benefit of competition. When a home is overpriced, it not only sits on the market but acts as a selling point for homes that are at market. Buyers are looking for value so if they think I can get the same house for Less…down the block…then that’s where they will shop.
Some real estate agents use this desire against the seller. I know agents who will agree to list your home too high in order to get your listing…plain and simple. The issue becomes very clear once an offer has been presented…from the lenders point of view. Today’s lenders are extraordinarily cautious now and base their loans on accurate appraisals. Appraisers must base their price on comparable properties that have sold. If your home is not able to appraise then it’s usually the seller who has to reduce their price…why risk losing your buyer?
The first two questions that buyers ask are: What’s the price and how long has it been on the market? The reality is that overpriced homes will simply sit on the market. Unfortunately, extended time on the market forces the question in a buyer’s mind of possible bigger problems looming with the walls of the property. That’s a risky way to sell a home because it will create an atmosphere of distrust.
Statistically homes that start their listing life overpriced almost always sell for less than market. With fewer buyers to choose from , zero leverage because of time on the market, too high an asking price and carrying costs to maintain the property, most sellers find themselves getting the least from their investment rather than the most. It doesn’t make sense to follow the ball down the hill…you want to be in front and use the marketing time wisely.
As a real estate professional committed to happy clients who are eager to get the most from their investment, sharing this must know information with potential sellers in on the top of my to-do list. If you are considering selling your home please contact me for your free market analysis. I can be reached at Beth@FolsomLakeHomes.com
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