Reason #1:
By overpricing your property, what will happen, you will not have anything to negotiate with. You will think, I will price it $1,000,000 more, just to have some room in there for negotiations. Those were very, very old tactics, that are not used anymore in Today's market. Buyers are well aware of that. If you price it right, you will have people coming at you and actually give you some offers, and you will have something to counter. When you're too high, nobody even looks at it.
I am a buyer, and I wanna look for a home. I have a bracket of price, where I am looking for, and if let's say I am looking between $1,000,000 and $2,000,000 Million Dollar home. If your property is listed at $2,200,000 your property will not show into this bracket search. That doesn't mean you should underprice your property, No! It's just that, you put a price, thinking like a buyer that, if I am looking for that specific home that has your characteristics and has your features, the same square footage that I am looking for, and those type of homes sell between $1,000,000 million and $2,000,000 Million, that's where you should be priced at. That's why you'll never get any offers when you overprice it.
Reason #2
You're giving your competition "A PEDESTAL" you're telling your competition: "Go ahead, you sell first! I will just wait here, and WAIT..." No!, That's not the right thing to do. Your buyer, eventually, he will see your property. They will search a little bit more on top of their budget, to see what's out there. To see if the can negotiate some of it. It is actually reasonable for the price? Do I wanna pay the price for it?
Because If I am a buyer and I am looking for something, I am looking for the best deal for my money. You don want to overpay for anything. If I am looking for a home, which has pretty much the same features and it's cheaper, which one would I buy? That's the reason why they choose this property instead of yours, which is overpriced. You should never do that.
Reason #3:
Obviously, the house is not going to sell. If it does it will be a miracle, but if it doesn't sell what that means to your property? That's devaluating your property in time, which means you've listed it at a certain price, and then 6 months later it didn't sell, a year later it didn't sell. What happens then, it creates a devaluation of your property. So now, for you to sell it, you'll have to drop a price very, very low, in order for the buyers to take a look back at your home. " I've seen this house last year but it didn't sell, what happened to it? It dropped a lot from the price, maybe it's a good deal to buy it now."
Don't make these mistakes, never overprice your property. Your property will sell for what is worth it. It will never sell for what you think it's worth it. It will sell for what your buyers think it's worth it for them, from their own opinion, for their own needs.
Whatever I need that's what I am looking for and what I am buying and you should think that way. Those are the reasons that you might consider before you price your house, and you might actually listen to your agent, who is actually there to help you. That person knows the market and understands how everything works, how the buyer thinks, and how to manage everything so that your property gets sold if you really wanna get it sold.
If you wanna have it there on the market, sitting for a year, two or three, you can do that too, but you will lose time, money, marketing expenses, plus your property's value. As long as your property is in the market without being sold, that's the time that it's taking out of your value. Be smart and make great choices.
My name is Angela Andronache, I am a Luxury Real Estate Advisor and I can help you sell your home faster and not overprice it. I will price it right for you and we'll get it SOLD. Call me Today for an Appointment and let's make it happen.
Angela Andronache
Luxury Real Estate Advisor,
Direct Cell: +1-305-924-1025 E-mail:
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