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Here are a dozen
reasons why it is so important to realistically price real estate
properties.
Overpricing
reduces the response the real estate company will receive from their
advertising because other properties within the same price range may
have more features than yours and sell
faster.
Your property
must compete with properties now on the market. Buyers buy by comparison so
homes not comparing favorably with those the buyers already
inspected do not sell.
Buyers expect
more at a higher price and failing to find all they had hoped for at
that price become disinterested.
Overpricing
causes most homes to remain unsold for too long. Buyers aware of this long
period of exposure are hesitant to buy fearful that there is
something wrong with the home.
This increased sales resistance makes it very difficult to
sell.
Many times
overpricing causes substantial monetary loss because the owner is
compelled to own two homes.
Some of these costs are taxes, insurance, maintenance, heat,
and interest on equity.
These expenses are then combined with the many inconveniences
the seller encounters.
Overpricing
accomplishes nothing because most homes sell for their fair market
value. The advantages
of realistic pricing far outweigh any consideration to price a
property more than 5-10% above this fair market
value.
Salespeople tend
to lose their enthusiasm for a home after a number of unfavorable
reactions from buyers, causing many of them to discontinue showing
the property.
The real estate
company making a practice of taking overpriced listings and having
their For Sale signs on the property for months without results will
become to be known as a poor market
researcher.
A real estate
salesperson’s most precious commodity is his time. Therefore, a salesperson
cannot afford to spend time working overpriced
listings.
Overpricing tends
to force buyers who could buy in your area to look
elsewhere.
The right price
is of the utmost importance of the sale in any commodity. Homes priced right usually
sell after a normal market exposure.
A real estate
salesperson will fail to provide the seller with real service if the
home is not listed at a realistic price. It is difficult for a real
estate company to build his business if it has too many sellers with
unsold properties.
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