Home Sellers » Pricing Risks

Over Pricing

Pricing your home above the market value, you will not attract prospective buyers who would otherwise be prime and potential candidates for your home. When your home is priced too high:

  • Your home may be priced above the highest limit in the search criteria of potentially qualified buyers.
  • Your agent or other brokers may neglect to promote your property to potentially qualified buyers simply because it's out of their expressed price range.
  • You could actually be helping to sell your competition's home because comparable homes at a lower price will seem more attractive to buyers.
  • Fewer prospects will respond to agent's marketing.
  • It seems that you are not truly motivated to sell.
  • Fewer buyers will consider your home, and fewer offers will be received.
  • You may lose buyers who are really willing to negotiate.
  • Marketing time is prolonged, and initial marketing momentum is lost.
  • If you are lucky enough and the property does sell above true market value, it may not appraise at the same value, and the buyer may be unable to secure a loan.

Under Pricing

When you price your home under market value, you will likely leave potential money on the table, generating a lower net return. However, it is likely that you will have multiple offers allowing you the opportunity to select an offer that may best meet your timing needs. And also if you are doing this in a big appartment building, you seriously affecting a value for whole development because your price will be used in comparative analysis for another seller.

Competitive Pricing

  • From the years of market analysis it is khown that the closer the gap between the perceived market value of the home and the asking price, the more likely you are to receive an offer.
  • In general, homes that are priced more than 5% above the expected market value, will not receive purchase offers.
  • You increase your chances of timely sale at or near your asking price, when the price is based on comparable sales information.

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