Every person who is thinking of selling their home wants to know..."What will my house sell for?" How can you get your home sold and get the most money possible? Many sellers think that listing your home a little higher will be the best option for you.I'm here to tell you that's not true.
Why should you not list your home a little higher?
You may attract agents who don't have your best interests in mind.
When you're interviewing agents to list your home with, one of them may only tell you what you want to hear. Of course it will sound great for that agent to tell you to list your home $20,000 higher than the others have, but do they have your best interests in mind? Chances are this agent wouldn't be able to get you to list with them unless they gave you a higher listing price. It doesn't matter to that agent if your home gets sold or not, they will probably just want to pick up clients who are interested in your listing but won't ever buy it because of the high price. Never pick an agent based on their suggested listing price! Choose an agent who has researched the market for your neighborhood and has a realistic idea of what your home really can sell for.
You may scare off potential buyers.
If buyers are working with an agent, they'll be able to spot an overpriced home very easily and warn their clients to stay away. If buyers aren't yet working with an agent they're still going to stay away from the home that's pricier in the neighborhood. It's understandable that you're emotionally attached to your home and you've put years worth of work into it. Unfortunately some of those improvements don't necessarily mean that you'll get return on them.
It will take too long to sell.
There's an ideal time frame for your home to sell which is in the first few months. If it takes much longer than this your listing could expire and that leaves a mark that you can't get rid of. The market could also take a turn on you after those few months which could make you have to drop the price even more if the market goes bad. When buyers are interested in a home, one of their first questions is "How long has it been on the market?" Too much time on the market may make buyers feel like they have the upper hand. Buyers may also start to wonder what's wrong with your home and why no one has made an offer. It's human nature to try to negotiate with someone whose home has been on the market for months. Over pricing will not lead to a higher sales price...it could mean the exact opposite.
It may fail to show up in search results
If you list your home at $320,000, everyone who is searching for a home up to $300,000 won't see your listing in the search results. You think you've listed your home in the right range for buyers to haggle with you, but the problem is that they will miss seeing your listing all together!
Appraisal Issues
If someone really does decide to pay your list price, they'll most likely have to get a mortgage to pay for it. To get a mortgage to buy your home, the loan originator will demand to have an appraisal and the market is what drive the property appraisal. If the market value is lower than what the buyer has offered, then it won't appraise.
Be Realistic
Look for a good agent and listen to their advice. They may suggest that you go a little lower to encourage many offers rather than to risk the problems that come with a high price listing. If you can stay realistic, you can get your home sold. 75% of real estate marketing is the price. It doesn't matter how much marketing and advertising goes into it if it's overpriced.
If you want to know how much your home could sell for in today's market, give me a call.
Realtor, Coldwell Banker Kaiser
Carmel, Indiana
meganbowmanrealtor@gmail.com
812-583-4620
