Overpriced Homes-Sell Slower and For Less

By
Real Estate Agent with Munson Realty Southern California Real Estate

Overpriced Homes-Sell Slower and For Less If there’s anything we can take away from the plethora of Bank Owned Foreclosures is they certainly know how to price a home to move!

I maintain that you almost always shoot yourself in the foot by overpricing your home. Your home will almost overpriced homesalways sale at or above market value by pricing at or below market value.

So why is that? Well think back at when YOU were buying a home. Remember when a “great deal” came on the market and everybody and their agents were “swarming” to the open house? You placed your offer only to find out their were 10 other offers and they were going above the asking price? This “bargain price” created an auction affect and got people excited. THAT is how banks are pricing their homes and if you want your home to move quickly and for the most amount of money, this is a winning strategy.

So why don’t sellers do it? I think it’s because there’s a little voice inside of our head (and pocketbook) that says “what if”.

“What if”- I can get $50K over market value. (even if someone were excited enough about your home to pay $50K over appraised value, their lender won’t loan the money if the value isn’t there. No loan, no buyer)

“What if”- I don’t get multiple offers and I only get one offer (May be still overpriced!)

Often fear (and greed) hold us back from making smart choices! Don’t feel bad though, even Real Estate Agents are guilty of senselessly overpricing their homes. Somehow when it’s our turn to sell all of our “market knowledge” becomes goo and leaks out of our ears! It’s like the hairdresser with bad hair!

The bottom line is, almost always, an Over Priced House will sit on the market longer and sell for less than it should have had it been priced strategically from the beginning.

 

Copyright © 2010 By Stephen Munson,Munson RealtyPasadena|Overpriced Homes-Sell Slower and For Less*overpriced homes,overpriced house

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Location:
California Los Angeles County Pasadena
Tags:
overpriced homes

Comments 153 New Comment

Rainer
140,501
Pasadena Short Sale Agents Pasadena Short Sales
Munson Realty Southern California Real Estate

Hi Anne, Thanks for the "Sellers Viewpoint"! Glad you raised your hand! :)

August 11, 2010 04:02 PM
Rainer
9,174
Crystal D'Angelo
Keller Williams Frisco Stars

This is so true.  It is such a challenge to get homeowners to understand this strategy.  If I have clients who want the "what if"  strategy I will take them to preview a few other homes in the neighborhood so we can compare and price BELOW our competition.  Thanks for the great article!

August 12, 2010 11:15 AM
Rainmaker
370,545
Kerry Lucasse
Your Nest Atlanta Real Estate Consultant
eXp Realty - Nest Atlanta Team

Excellent post!  Here in Atlanta, homes that are priced correctly sell in 26 days (on average) and those that overprice end up taking almost 300 days to sell.... if they ever do sell.

August 14, 2010 12:53 AM
Rainmaker
44,390
Carol West
Real Estate Agent, Hillsboro, Beaverton, Portland
Carol West Real Estate, LLC

Thanks for a great post and very good information to share with our clients.

August 14, 2010 01:06 AM
Rainmaker
129,614
Lanette Branch
Bel Air, MD REALTOR
RE/MAX Components

Stephen are right on with this one.  Love, love, love the 'shoot yourself in the foot' analogy; it really gets your point across.

August 29, 2010 12:47 PM
Rainer
140,501

Pasadena Short Sale Agents Pasadena Short Sales

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