Most Seller’s do not intentionally over price their homes. Often, as market conditions change, sellers and realtors can be caught off guard. If recent “sold” activity is not heeded, existing listings can quickly become over priced.
How do you know if your property is over priced? (if any apply)
1. After 4 weeks on the market (when working with a top producing agent), you have not had any showings or interest calls.
2. You have had showings but no offers to purchase in 90 days.
3. Homes in your area are selling even though they do not have the features equal to or greater than yours.
4. Feedback from your Realtor and experienced/trusted Realtors who have viewed your property recently suggest that the price is to high compared to the competition.
5. It didn't sell - in 90 days.
How does overpricing hurt the chances of your property selling?
1. Your property can become stale and buyers may ask why has it been on the market so long.
2. Realtors and buyers may assume that you are not serious about selling and overlook your property in favour of other, lower priced ones.
3. Buyers overlook your property because they do not want to waste their time.
4. Buyers and Realtors do not place offers because they fear confrontation and the stress of failed negotiations.
5. If your home has unique features you may get an offer but often it may be a low ball (low offer price).
5. It is hard to get Realtors and buyers excited about showing your home.
6. Financing and appraisals become difficult and even if a buyer is willing to pay your price, the bank or lender may not finance the negotiated price.
Not selling your property in the intended time, for the intended asking price places tremendous amounts of stress on Sellers and Realtors.
Sellers see the value of their most important asset declining yet they may not “see” the activity employed to promote their home. On the other side is a Realtor who has paid thousands of dollars to maintain their sales and promotion plans without any income to support their business.
What options do you have if your property does not sell at the price you want?
1. Ask yourself, what price do you NEED. Price your property within 2% of this "lowest" need price.
2. Take the property off the market.
3. Systematically drop your price until it sells.
Which ever action you take, be sure to speak your Realtor and discuss your options openly and honestly. The biggest make I see is when Sellers need to sell yet they do not address the current market conditions. If you listed the property 6 months ago, the CMA value you have is way out of date and you need new data. Get your Realtor involved and seek out their true advice.
Still having trouble? Here are some parting thought processes for you.
All markets are relative. This means that if your property value has declined, so has everyone else’s.
Don’t take it personal. It’s just money—they print more of it everyday.
QTR. Ask yourself, how important is it to sell your property and if you did, what would you do with the “Quality Time Remaining”. Holding out for a high price is no measure against moving on with the next phase of your life, goal, dream or adventure.
If you need more money than the market will provide, seriously consider not selling.
Price to sell fast. Beat the market or it will beat you and your price will erode further. In a Buyer’s market, it is not “when” your property will sell, it’s “if”.
Do not suffer a new face wisely. Often, your existing Realtor has given you sound advice about pricing. You may have resisted the advice. Before you drop your current Realtor, consider giving him or her a chance to sell it at the lower price that you will accept.
Remember if the price is wrong, no amount of marketing and realtor skill can magically make someone over pay for your property.
Avoid Overpricing regain momentum in your sales and marketing plan!
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