Why Proper Pricing is Critical

A property generates the most excitement and interest amongst brokers and buyers when it first goes on the market. This is the time, the first few weeks, when the number of showings is the greatest - if it is priced correctly at fair market value. That's why starting too high and dropping the price later is not the best way to start out marketing your house. Your house will miss that all important momentum building excitement and most likely will fail to generate activity. You may even have to drop your price below market value just to compete with the newer competitively priced listings. Pricing correctly in the beginning is critical if you are going to get the highest possible price for your home!

Overpriced Homes Take Longer to Sell…
The higher above market value you are priced - the longer it will take to sell. The mindset of "We can always start out high and see what happens - then lower the price if we have to" is not a good idea. With several downward price adjustments, it is likely that your home will gain the reputation of a problem property. Listening to what the market says and pricing your home correctly at the start will save you frustration and disappointment.

You Will Lose Potential Buyers…
The number of buyers will dwindle because of the higher price you have set on your home. Nowadays with information so readily available, the home buyer is far more knowledgeable about fair market value. Thanks to the internet and the information age most people now know what is a fair price. For this reason alone, being extra sharp on pricing is a must - so you can get the right amount of activity on your home - so it will sell for the highest possible price, shortest time and least amount of inconvenience.

Your Buyers May Not Get the Financing…
Even if you are lucky enough to find a buyer who is willing to pay more than fair market value, it may be impossible for that buyer to get the needed financing. Lenders look at fair market value, not the sales price, to determine if they are going to make the loan on the purchase. The lenders depend on independent appraisers to make sure that the sales price is at fair market value. When a property fails to appraise at fair market value, either the buyers must make up the difference in cash, or you may have to re-negotiate the sales price, or the transaction will fall apart. Therefore, even if you want more than fair market value the lenders will not give it to you. Pricing your home at fair market value not only attracts more buyers but will allow the sale to happen.

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Licensed in the State of Vermont