Reasons for overpricing:

•  Improvements, you cannot add an item to a home to your style and expect a buyer to pay the original cost.
• Need, an owner’s need for money does not increase the value of the home.
• Values are location specific, higher values in destination does not increase the value of existing home.
• Original purchase price high, chance are you paid market value, it not that price was too high, but a market that has experienced subsequent change.
• Lack of factual data, based on opinion of value on recent documented sale prices.
• Bargaining room, Buyers will offer low, at any price, easier to negotiate to fair market value.
• Corporate buyout, third party companies purchase thousands of homes a year so the offer you received is usually market value.

The benefits to proper pricing:

• Faster Sale – save carrying costs, mortgage payments and other ownership costs.
• Less Inconvenience – Saves time/energy it takes to prepare home for showings and make arrangements to be offsite.
• Exposure to more prospects – at market value, you open your home to more people who can afford the price.
• Increase salesperson response – salespeople will make special efforts to contact potential buyers to show home they are excited about its price.
• Better response from advertising and signs calls – turn to showings when price is not a deterrent.
• Attracts higher offers – buyers are less likely to offer low ball out of fear of losing a good home.
• Means more money to sellers – Priced right, excitement of the market produces higher prices and overall net in terms of actual sale price and in less carrying cost.

Realtors® have known it for years – well-kept homes that are properly priced in the beginning always get you the fastest sale for the best price! And that’s why you need a professional to assist you in the selling of your home.

Often, in a seller’s market, homes that are priced slightly below market value initially will sell for more, simply because of the extra interest they incite.  This can be a risk, however, and when it comes to such a decision, an experienced, trusted Realtor® is your best ally.

Ultimately the buyers are going to set the price, you find this difficult, so do they. Auctioning with no published minimum price puts the pressure on the buyer to determine how much the property is worth. A lot of times they just don’t have the tools/knowledge to do this. They can see what other homes are listed for, but they don’t have access to recent sales data.