Sellers have a host of reasons why they remain attached to prices which are too high for the market. Here are a few of the most common and why they ultimately work against sellers.
All sellers want their home to sell for the highest possible price. This is one reason it’s why it’s so easy for agents to “buy” listings. If you’re not familiar with the concept, “buying” a listing is when an agent (unscrupulously) tells a client their home is worth far more than the market value in order to win the listing.
Sellers are susceptible to this tactic because they want to believe, however irrationally, that their home is for some reason or another worth more than comparable homes on the market. Sometimes, though, sellers believe high home pricing is either an acceptable risk or even a benefit. Here’s what they say, and why it’s a problem:
- “I can always come down in price later if I have to.”
Yes, it’s possible that someone will find the house irresistible and pay the inflated price, but the odds are the house will languish on the market until the price comes down. Buyers, though, will see this from a different perspective. They’ll be thinking: What’s wrong with the property? Maybe I can get this house for significantly below market value. Holding out for a high could end up leading to a desperation low.
- “I have to keep the price high for negotiating purposes.”
A house isn’t a used car. Don’t start far above what’s acceptable in order to pad out the negotiations. Buyers will have access to the same market data, and their agent will have a pretty good idea what the home’s true market value should be. The ruse will quickly come to pieces, so why not price right for a quick, fair sale?
- “This is the price I need to get for my house.”
If that’s true, sellers should also prepared to stay put when the house doesn’t sell. Despite dire and important reasons why lower offers can’t be accepted, the market is indifferent to the seller’s situation. There are other homes and other sellers unencumbered by the same reasons.
- “A house just like mine sold for this price… so why not mine?”
Sellers will assume houses are identical when the final price tells sweet story. Odds are there are other outstanding reasons the home sold above market value, especially when it comes to interior renovations.
I’ll be happy to give you an accurate valuation for your home. Contact me, your trusted local real estate professional, by phone at (905)940-3599 or by email at firstname.lastname@example.org today. Let’s schedule a time together and talk.