When the real estate market cools, pricing a listing correctly becomes especially critical so it's important to listen to your real estate professional and price with your mind not your heart! Use relevant comps and make sure to analyze the current market and not the market from 6 months ago. Interest rates are on the rise, affordability is down and many buyers are taking a step back. It's no longer the frenzied seller's market of 2021 so if you want to sell in a timely manner, price accordingly.
Here are some thoughts about overpricing:
An Overpriced Home:
May not sell quickly and can become "stale". Buyers start to wonder what might be wrong with the property and it essentially becomes stigmatized
Can encourage the potential buyer to "wait and see" because they are sure it won't sell at the "elevated price"
Might make the seller look "unreasonable" or label them as an unwilling seller
Helps sell the competition because it makes the other homes look like they are better values
May discourage buyers from making an offer because they are afraid of offending the seller with their more "realistic" offer
It's important to remember the definition of Fair Market Value. It is the price a qualified, reasonably knowledgeable buyer is willing to pay and a seller, not under duress, is willing to accept after the home has been properly exposed to market. What you paid for your home in 2012 and how much it cost to remodel have nothing to do with how much a buyer is willing to pay in the current market. So, here are a few thoughts on.....
Pricing Right:
Gives your home optimum exposure in the first couple weeks on the market so pricing right upfront is essential!
Creates a sense of urgency to buyers and brokers to act quickly, prepare a clean offer and be first in line with their submission.
May create a multiple offer situation and raise the sales price above asking price
Your real estate professional is here to help you with pricing, marketing and negotiating. They know the market and know what needs to be done to maximize your home's value.