Sellers – Go Ahead Shoot Yourself in the Foot

Pitfalls of Overpricing Your Home

by Elizabeth Cooper-Golden

in Huntsville Home Seller Tips

Overpricing is a Huntsville Show-Stopper

The art of pricing your home to sell is so important. While I understand your thoughts and perhaps your needs to overprice your home, I’m here to tell you, you are making a big mistake.  Why not go ahead and load the gun in preparation for shooting yourself in the foot.

The days of putting a price on your home because you “need or want that price” are gone.  Buyers today are much too savvy.  After the recent nationwide meltdown of the Real Estate Market, buyers are skittish and rightly so.  A majority of our buyers here in Huntsville are Engineers and Scientists or they once were.  They make up a majority of our business and they are …um …some smart folks to say the least. Without our stable Engineers, our real estate market could be in the tank along with so many other cities.  Slow and steady growth has seen us through the tough times.  Yes, our market is down a bit, but compare us to other areas and we are doing very well.

I work with buyers and sellers and not only hear what they have to say but listen. With a large inventory of Homes For Sale in Huntsville,  it’s easy to understand why a buyer would not want to waste their time making offers and bickering.  There is a huge psychological component to both Buying and Selling in our current market.

Buyers look at dozens of homes and typically, sadly often times, know the market value better than a seller does.  Why?  They’ve seen them all!  By the time buyers make an offer, they are well educated on our Huntsville Real Estate Market, either from the data I have gathered for my buyers from recent sales or simply by seeing for themselves.

Neighborhood comparables are a very good indicator of market value.  It is nearly impossible to convince today’s cost-conscious, consumer-savvy buyers,  to pay more than the market says it is worth.  Would you?

Overpricing your home will not only cause your home to linger longer on the market, but it will also raise red flags as to why it hasn’t sold, even when it has been reduced overtime to the correct market price. Let me walk you through some of the the typical Huntsville Buyer thoughts and expressions on how overpricing can and will lead to a loaded gun.

Buyer’s – Point of View

The sellers must be hard to deal with because their home is so overpriced.

The buyer finds a similar home that meets their criteria that is priced at market value.  So why fight with an unrealistic seller?

The buyers do not want to offend the sellers.

Afraid of being told “NO” by the seller.  They often won’t risk rejection.

They are very  afraid of overpaying.  What if the housing market continues to decline?

Something is wrong with this house.  Look how long it’s been on the market!

Oh yeah!  Here is the clincher because buyers in today’s market are much like sharks and can smell blood in the market’s water:

We have a real desperate seller here!  Look how long it has been on the market and how many times it has been listed.  If they just reduced it that much, they’ll certainly take this much!

So when it gets to this point, prepare yourself for the super Low Ball offer…well below the true market value more than likely!

Buyers Agent – Point of View

They simply are not interested in showing over priced listings to clients.  They don’t want to risk losing credibility by taking their buyers to see an over-priced property.  If they do show a clearly overpriced home,  it is usually in an attempt to show their clients how well another home is priced.

From a Buyer’s Agent point of view, why do they want to fight with a listing agent that clearly thinks his listing is priced at market, when the numbers prove otherwise.  Often buyers, especially relocating buyers,  have “X” amount of time to buy a home.   Collectively, they have no time to waste here.  If the transaction begins on a negative note, it may more than likely end on one as well.  So they will often just pass.

Sellers – Do your homework

Price your home correctly.  Listen to your agent.  Listen to our Huntsville Real Estate Market.  The longer your home lingers, it is statistically very likely you will sell it for less.  The first 30 days are the most important time when listing your home!  If you can’t list you home for the price you have in mind in today’s market, simply consider waiting.

By all means, avoid shooting yourself in the foot by making sure you are working with a qualified REALTOR® that will price and market your home to get you top dollar, in a timely fashion!  Choosing a Huntsville Listing Agent is the most important step.  A good agent may not always tell you want you want to hear.  They will tell you what you need to hear!

One comment on “Sellers – Go Ahead Shoot Yourself in the Foot

  1. It’s oh so true, I’m a shark-buyer and smell blood, and I will low-ball…hard…with this much inventory these days, and information at our fingertips, I’ve learned to be shrewd and savvy. Just like (some) Realtors (re: the article about Realtor-owned properties and disclosures) were, when they bought last year (s), turned around and try to make a mini fortune now (yeah, I had some of these listings in mind reading the headline).
    I’m not a Realtor, just a prospective buyer doing my homework/legwork (so far without representation). I’ve watched your work so far and it’s great. Thank you for your insights.

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