Buyers buy by comparison
We all love our homes, right? After all, that is why we chose them after viewing so many others.
When it comes to selling them, we have to look at it as if we were a buyer. We need to research the competition, and know what we are up against as buyers normally buy by comparison.
Being prepared and knowing what other similar properties are selling at before you go to market is sensible.
It is crucial to choose the salesperson who is experienced enough to know that by telling you what you want to hear in order to win the listing is not the right way to go.
Buyers will buy at “fair market price” and not pay you extra because you think that your house is worth more.
The consequences of overpricing at the beginning can often cause you to sell for much less in the end.
Points to remember –
An overpriced property discourages prospective buyers from making offers since the difference between the asking price and the market price become substantial.
You will only help others sell their properties when buyers compare them to yours on the internet.
Salespeople lose interest in overpriced properties and will concentrate on the ones that are priced correctly and fairly in the current market.
There will be a decline in viewings as salespeople will avoid showing the property in order not to lose credibility with their buyers, or they could show it and sell another home because it is priced correctly in the current market when compared to yours.
Potential buyers could get turned off by the price and fail to make any further enquiries.
Purchasers who require financing often require a registered valuation by the Bank’s Valuer which will be based on market related sales data – if a lower value based on those statistics is found, then the finance will fail, and the sale will fall over.
You waste advertising dollars with an overpriced property, as it will not get the normal advertising response and often an extended campaign will be required, therefore more money will need to be spent on advertising.
Eventually market interest will decline on an overpriced property and when this happens sellers often become desperate and some will sell for much less than fair market value.
In the meantime a seller’s maintenance, holding, and advertising costs have increased, and they will get much less in the hand than they would have if they had priced correctly in the first place.
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